Accounting Uil Practice

Which of the following appears on both the income statements of merchandising and service companies?
A. Cost of goods sold.
B. Gross profit.
C. Operating expenses.
D. Sales revenue. – C
Working Capitol – current assets -current liabilities
Current Assets – (cash, accts revievable, inventory) turn into cash within 12 months
The acronym REID is used when – Closing temporary accounts
Bank Reconciliation – Is the process of verifying the accuracy of both the bank statement and the cash accounts of a business.
Retained Earnings – The amount of stockholders' equity the corporation has earned through profitable operations and has not used for dividends
-Totally separate from the company's cash account
-Increased by net income, decreased by dividends/net loss
Nalidixic acid is only used to treat:
Sales Discount – A cash discount offered by the supplier for payment within a specified period.
endorsement: a signature or stamp on the back of a check transferring ownership – endorsement: a signature or stamp on the back of a check transferring ownership
leverage – Indicates how much of the company's assets are financed by equity. The higher the ratio the more assets are funded debt.
full disclosure principle – requires a company to report the details behind financial statements that would impact users' decisions.
Code of Conduct – A statementthat guides the ethical behavior of a company and its employees
payroll register – a business formed used to record payroll information
Nаlidixic аcid is оnly used tо treаt:
annual statement of account – Jahreskontoauszug
Salaries Payable – Current and Accrued Liability
Unrealized Holding Gains or Losses – Are amounts associated with price changes of securities that are currently held.
What is Interest? – Principle x Rate x Time
Capital – account that represents the owners investment in a business.

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