The Basic Principles in the Development of an Accounting Information

question 37

Short Answer

The basic principles in the development of an accounting information system are (1)________________ (2)________________ and (3)_______________.

Calculate basic earnings per share and understand the effect of preferred dividends.

Recognize the accounting treatment and financial statement presentation of the sale and purchase of treasury stock.

Understand the concept of prior period adjustments and their impact on retained earnings.

Apply knowledge of stockholders' equity transactions to compute year-end retained earnings balances.

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Definitions:

Law of Conservation

A principle stating that mass in an isolated system is neither created nor destroyed by chemical reactions or physical transformations.

Energy

The capacity to do work or produce change, existing in forms such as heat, kinetic energy, potential energy, and electrical energy.

Calorimeter

An apparatus used for measuring the amount of heat involved in chemical reactions or physical changes as well as heat capacity.

Calorimeter

A calorimeter is a device used in the measurement of the heat of chemical reactions or physical changes, as well as heat capacity.