Accounting 1 Normal Balance

Vertical analysis – a method of comparing a company's account balances within one year by dividing each account balance by a base amount to yield a percentage
Cash Payments Journal – Journal used by merchandising business to record all disbursements of cash.
credit – amount recorded on the right side
Operating Cycle (cash to cash) – The process of taking cash to inventory then selling the inventory creating a receivable and then back to cash.
The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is
A. outstanding checks.
B. deposit in transit.
C. a bank error.
D. bank service charges. – D
Business entity – Bussiness are to be accounted for separately from other business entites
cash payments journal – a book of orginal entry in which only cash disbursements are recorded
A certain insecticide kills 75% of all insects in laboratory experiments. A sample of 6 insects is exposed to the insecticide in a particular experiment. What is the probability that at most 2 insects will die? (Round your answer to 4 decimal places) [you must show some type of work or give an explanation; just an answer will not get full credit]
gross profit – sales less cost of goods sold
SEC – an independent federal agency that oversees the exchange of securities to protect investors
A certаin insecticide kills 75% оf аll insects in lаbоratоry experiments. A sample of 6 insects is exposed to the insecticide in a particular experiment. What is the probability that at most 2 insects will die? (Round your answer to 4 decimal places) [you must show some type of work or give an explanation; just an answer will not get full credit]
Comparability – financial reports from different periods should be comparable with one another in order to derive meaningful conclusions about the trends in an entity's financial performance and position over time.
Activity Ratios – reflect management's use of assets

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