Century 21 Accounting Chapter 3

Expenses – do not appear on balance sheet
allowance method – bad debts expense and allowance for uncollectible accounts
Total Contribution margin – Will always change when sales change
traceable FC – manager salary, maintenance for building, insurance
Revenue accrual – Revenue and expense are recorded in accordance with the all events test
Invoice – A paper showing quantity, description, prices of items, total amount of purchase, & terms of payment is an
Net Profit – The difference between net profit and expenses when net profit is larger.
Dividend – Income distributed to shareholders
record the revenue and transfer the inventory to expense – What two journal entries are necessary for the sale of merchandise?
What is the common trait of all main-sequence stars?
payroll deductions – amounts withheld from employee's gross pay
Which fund type is required to be used by a general purpose government? – General fund
Closing Journal Entries – made at the end of each accounting period to transfer balances in temporary accounts to retained earnings and to establish a zero balance in each of the temporary accounts
Blank Endorsement. – The handwritten signature of the payee on the back of the check.
income statement – how much the company EARNED during – a specific period of time (monthly, quarterly, yearly)

value of what was provided to the customers (price)

cost of providing to customers
=
earnings (net income or loss)

Allocated cost – A cost that can be directly traced to a cost centre
Whаt is the cоmmоn trаit оf аll main-sequence stars?
Cash equivalents would not include – Cash not available for current operations
Sales – …Is a Credit balance account.

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