Accounting I: Financial Accounting Ch 2

Gross Profit = – Net Sales – Cost of Goods Sold
partnership – 2+ owners; split profits, share control and responsibility, jointly reliable
Liablities – Balance Sheet
classified as current or long-term
Financial – Reports for "outside" users (Bank)
Sales Returns – refer to merchandise that customers return to the seller after the sale
When you recognize revenue when it is earned, and expenses when they are incurred you are operating under the – Accrual basis of accounting
Direct costs are traced the same way for actual costing and normal costing. – True
newsagent – a shopkeeper who sells newspapers
The four basic statements: – 1. Balance Sheet
2. Income Statement
3. Statement of Retained Earnings
4. Statement of Cash flows
Read the following problem description then choose the correct null and alternative hypothesis. A new drug is being tested to see whether it can reduce the rate of asthma attacks in children ages 5 to 14 with asthma ages. The rate of asthma attacks in the population of concern is 0.0744.
creditor – someone to whom a company or person has a debt
financial statements – Financial reports that summarize that summarize the financial condition and operations of a business.
Reаd the fоllоwing prоblem description then choose the correct null аnd аlternative hypothesis. A new drug is being tested to see whether it can reduce the rate of asthma attacks in children ages 5 to 14 with asthma ages. The rate of asthma attacks in the population of concern is 0.0744.
Not affected – when cash is spent in the acquisition of an asset the net worth of a business is
Credit Card Discount – Is the fee charged by the credit card company for its services.
Adjusting Entries – Needed whenever revenue or expenses affect more than one accounting period. Involves a change in an expense, revenue, asset, or liability.

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