Accounts

Revenues – Sales of products or services to customers
acid test ratio is the same name as – Quick ratio
Sales minus cost of good sold and equals – Gross profit
sale on account – a sale for which cash will be received on a later date
capital – account used to summarize owners equity
Sales Revenue – normally reported on the income statement when goods or services have been delivered to customers who have either paid or promised to pay for the item in the future
The account that provides a current or future benefit to the business is properly termed – An asset account
Briefly describe the intellectual climate of the “age of enlightenment.”
Trail balance – A list of all accounts and their balances
income statement – reports the revenues minus the expenses of the accounting period
Transaction – A business activity that changes assets, liabilities, and owners equity
Equity – Owners claim on asstss may also be refrres to as net assets
Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs.

If sales increase by $25,000, operating income will increase by:
a. $10,000
b. $15,000
c. $22,200
d. None of these answers are correct. – b. $15,000[($70,000 – $28,000) / $70,000] x $25,000 = $15,000

Changing the balance of a T-account – related to double entry makes sure that the debits and credits equal one another.
Briefly describe the intellectuаl climаte оf the “аge оf enlightenment.”
Accounting systems – The process for providing financial information that will be useful to management
To determine its net income for an accounting period, a company computes and deducts the total expenses from the total revenues earned during the period – Matching Principle
The Uniform System of Accounts for Restaurants – A system of accounting guidelines and procedures developed for the use of hotel and lodging properties.

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