Accounting Uil Practice

Fair value principle – States that assets & Liabilities should be recorded at fair value. ( market price)
Post-Closing trial balance – A trial balance prepared after the closing entries are posted
The only time the debit side of the revenue account is used is when you make – Closing entries
"Debt-to-Equity" Classify, Calculate, and Interpret – Solvency Ratio

Debt-to-Equity = [ Total Debt / Total Shareholders' Equity ]

Increases and decreases in this ratio suggests a greater or lesser reliance of debt as a source of financing.

order of set up on trial balance sheet – ALCRWE (assets, liabilities, capital, revenue, withdrawals, expenses)
accrued expenses – Expenses incurred but not yet paid in cash or recorded.
Return on Sales Ratio – Net Income / Net Sales

Higher is better. Measures profitability.

Receiving a payment from a customer on account would: – have no effect on total assets
Profit – The diffrence between the amounts received from customers for goods and services and the amounts paid for the inputs used to provide the goods and services
list the 3 types of well-known fraud – embezzlement
bad checks
bribes
SECTION 7: The present tense–question 3 Reminder about instructions: complete each sentence by giving the correct conjugated present-tense form of the verb supplied for you in parentheses. Important hints: You may not leave any verb in infinitive for any answer–all answers must have a conjugated form of the verb provided. The only tense that should be used for answers in this section is the present tense. Answers in any other tense will receive no credit. If for any answer you conjugate any verb other than the one given in parentheses, you will receive no credit for that response. Special letters, should you need them:   á   é   í   ó   ú   ñ Yo siempre [l1] (decir) la verdad.
Share of stock – each unit of ownership in a corporation.
net loss – expenses exceed revenue
IPO – formal name for goin public intial public offering
The owner of ABC Chewing Gum Inc. bought a computer for his personal use. According to the _____________, ABC should not record the purchase in its accounting records.
a.
Revenue Recording Principle
b.
Entity Concept
c.
Matching Principle
d.
Historical Cost Concept
e.
Monetary Unit Concept – b.
Entity Concept
Assets=Liabilities + Owner's equity is the – Accounting equation
fines – extraordinary costs, expenses
Accounting equation – The equation showing the relationship among assets liabilities and owners equity
SECTION 7: The present tense–questiоn 3 Reminder аbоut instructiоns: complete eаch sentence by giving the correct conjugаted present-tense form of the verb supplied for you in parentheses. Important hints: You may not leave any verb in infinitive for any answer–all answers must have a conjugated form of the verb provided. The only tense that should be used for answers in this section is the present tense. Answers in any other tense will receive no credit. If for any answer you conjugate any verb other than the one given in parentheses, you will receive no credit for that response. Special letters, should you need them:   á   é   í   ó   ú   ñ Yo siempre [l1] (decir) la verdad.
Income Tax – a tax levied on the earnings of individuals and businesses by Federal, state, and local governments
b. – How is the current ratio calculated? How is it used to evaluate a company?

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