C4 Classify Accounts

cheque butt – a source document used to verify cash payments
Davidson Electronics has the following:

Units/Unit Cost
Inventory, Jan. 1
Purchase, April 2
Purchase, Aug. 28

If Davidson has 7,000 units on hand at December 31, the cost of ending inventory under the average-cost method is:
A. $84,000.
B. $70,000.
C. $56,000.
D. $75,250. – D

Abnormal spoilage costs are not considered inventoriable costs under a job-costing system. – True
future value – value at a later date of a single sum that is invested at compound interest
Historical Cost – Assets are recorded at their actual cost. The cost remains on the books as long as the business owns the asset. No adjustments are made for changes in market value.
What can be Classified as Inventory – items held for sale; items in process of production or sale; goods used in the production of goods to be sold (raw material goods)
coverage ratios – measures of the degree of protection for long-term creditors and investors
internal users – make planning and control
accounting system – a planned process for providing financial information that will be useful to management
Definition of transaction – A transaction is a documented transfer of economic value between accounting entity and another party

All transactions have a dual aspect,
ex. Inventory increases cash decreases

What type of media is used using the 100Base-FX Ethernet standard?
income statement – also referred to as the statement of operations; most important financial report because it shows whether a business achieved its profitability goal through its operating activities; revenues, expenses, and net income. focuses on a company's profitability
expense – a decrease in owne's equity resulting from the operation of a business.
Whаt type оf mediа is used using the 100Bаse-FX Ethernet standard?
Securities and Exchange Commission – (SEC) – Federal agency Congress has charged to set reporting rules or organizations that sell ownership shares to the public. (p.10)
Accounting – is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.
Gross Profit Percentage – The amount of gross profit from each dollar of sales (gross profit percentage = gross profit/net sales).
When determining the normal spoilage rate, it is calculated based on the number of good units competed, rather than using the number of units started. – true
Building – debit balance, Balance sheet, Permanent, asset

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