Century 21 Accounting Chapter 1

income statement – a financial statement showing the revenue and expenses for a fiscal period
Transaction Analysis – Every transaction affects at least two accounts (dual effect), and the accounting equation MUST remain in balance after each transaction.
net earnings – another name for net imcome
Cash flows from operating activities – Cash flows from transactions that affect the net income of the company
Liabilities – creditors claim on the assets of a company
bonds payable – noncurrent liab
Tang, who lives in Dallas, Texas invests in stock of Thai companies through the Thai stock market. (REMEMBER THAT YOU ARE INDICATING THE IMPACT ON THAILAND'S BALANCE OF PAYMENTS.) A=capital account increases B=capital account decreases C=current account increases D=current account decreases
Long-term liabilities – Obligations that a company expects to pay after one year.
debit – the left side of an account.
Long term nature, not used in normal operations of the organization, not expected to be converted to cash within year – Investments
debt to equity ratio – total liabilities / total stockholder's equity
DIRECT MATERIALS QUANTITY VARIANCE – (SQ-AQ) X SP
Receipts – income received from the sale of goods and/or services; also, slips of paper documenting a purchase
Tаng, whо lives in Dаllаs, Texas invests in stоck оf Thai companies through the Thai stock market. (REMEMBER THAT YOU ARE INDICATING THE IMPACT ON THAILAND'S BALANCE OF PAYMENTS.) A=capital account increases B=capital account decreases C=current account increases D=current account decreases
Which of the following questions CANNOT be answered with CVP analysis?
a. If the company raises the selling price of its products and its costs remain the same, how many products must it sell to break even?
b. If the company's costs and selling prices don't change, how may products must the company sell to earn a desired profit?
c. At what selling price will customer demand for the company's products decrease?
d. Assuming that the company is currently earning a profit, if the company's costs and selling prices don't change, how much can the volume of sales decrease before the company stops earning a profit? – c. At what selling price will customer demand for the company's products decrease?

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply