Accounting Uil Practice

Accounting – Planning, Recording, analyzing, and interpreting financial information
the liability is generally decreased each period as a payment is made to repay the liability – …
checking account – a bank account from which payments can be ordered by a depositors
Accounts payable ledger is set up to: – meet the needs of each individual business EG: casket companies, embalming fluid, outer vaults
Net income/ Net sales – Profit Margin Ratio formula
Songbird Company has sales of $150,000 and cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is
A. $15,000.
B. $30,000.
C. $45,000.
D. $75,000. – B
nonvalue-added activities – all activities other than those that are
absolutely essential to remain in business.
Accrued expenses – Expenses incurred but not yet paid in cash or recorded.
Patents – Federal government grants that give the holder the exclusive right for 20 years to produce and sell an invention.
– May be purchased
– Amortization expense
Deferrals – dollars first, action later
The three least used influence tactics, according to a recent survey of employees, are _____.
The inspection point is the
a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
b. point at which costs are allocated between normal and abnormal spoilage
c. point at which the calculation of equivalent units is made
d. None of these answers is correct. – a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
Accounting period – the length of time covered by a set of periodic financial statements
The three leаst used influence tаctics, аccоrding tо a recent survey оf employees, are _____.
liability – the company's debts and obligations

what the company OWES

debt to equity ratio – total liabilities / total stockholder's equity
Cost Constraint – Constraint of determining whether the cost that companies will incur to provide the information will outweigh the benefit that financial statement users will gain from having the information available
The Realization Principle (Revenue Principle) – The business will report revenue only when realized, i.e. when activities related to selling goods or services are complete and cash collection is reasonably likely, not simply when cash is received.

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