Accounting Terms Chapter 912

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.

The number of units that must be sold to achieve $60,000 of operating income is:
a. 10,000 units
b. 11,666 units
c. 12,000 units
d. None of these answers are correct. – c. 12,000 units
10X – 4X – 12,000 = 60,000; X = 12,000 units

Sales Allowance – Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable.
VOUCHER REGISTER – Accounting dept. matches forms & completes a voucher summary.
Bookkeeper records the voucher in a
Revenue recognition concept – In general, revenue is recognized when an exchange has taken place Irrespective of Cash or Credit
In a periodic inventory system the entry to record the sale of merchandise on account affects which of the following accounts?
A. Cost of Goods Sold.
B. Purchases.
C. Inventory.
D. Sales Revenue. – D
Written-down cost – Historic cost after an adjustment for usage (depreciation)
Not cash and doesn't affect profit – …
In which of the following conditions should constructive conflict be stimulated?
Statement of Stockholders' Equity – An expanded statement that explains not only the periodic change in retained earnings but also shows all other sources of changes in equity.
Other expenses/losses – interest expense
loss from sale of investment
loss from sale of property, plant & equipment
GAAP and IFRS similarities and differences – pursuing convergence to minimize differences in principles
In which оf the fоllоwing conditions should constructive conflict be stimulаted?
Statement of retained earnings—explains changes in equity from net income (or loss) and from any dividends over a period of time. – b.

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