Chapter 1 Introduction To Accounting

35. The costs associated with producing revenues are referred to as:
A. Dividends.
B. Assets.
C. Liabilities.
D. Expenses. – D. Expenses.
A sale on account is not the same as a charge sale. – False
What classification of ratios is defined as: employed by analysts to determine the firm's ability to pay its short-term liabilities. – Liquidity Ratios
LIFO – cost flow method requires that the cost of the items purchased last be assigned to Cost of Goods Sold.

, the cost assigned to the first item sold would be $110 (the last cost in). The cost of goods sold assigned to the second item sold would be $100.

Unacceptable units of production that are discarded or sold for reduced prices are referred to as:
a. reworked units
b. spoilage
c. scrap
d. defective units – b. spoilage
The Treaty – Document instructing about communication between attorneys and auditors due to confidentiality conflict
Probable – claimant not winning extremely doubtful, client winning slight
Remote – client not winning extremely doubtful, claimant winning slight
assets – anything of value that is owned.
b. – Know if a debit or credit increases or decrease the various accounts
A baseline phase used in a visual analysis must contain enough data points to allow the investigator to estimate the level, trend, and variability of the phase.
revenue – an increase in owner's equity resulting from the operation of a business.
Retail sales tax – a tax imposed on tangible personal property sold at retail.
Full discloser – Companies must provide accounting information of sufficient importance to influence
barber – one who shaves and cuts the hair of customers
financial accountant – Finanzbuchhalter
Paid-in-Capital – An equity: Proceeds from sale of common stock plus any excess contributed by owners.
gross profit percentage – gross profit divided by net sales
A bаseline phаse used in а visual analysis must cоntain enоugh data pоints to allow the investigator to estimate the level, trend, and variability of the phase.
operating section – a report of the revenues and expenses of the company's principal operations
Times Interest Ratio – Income before expense / interest expense

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