C4 Classify Accounts

Variable cost per unit – High cost-low cost/high units-low units
income statement – reports profit of business operation during a specific time period
Prepaid assets – Asset created when a company pays in advance for products or services to be received later. Also called prepaid expenses. (p52)
gross profit equation – net sales – cost of merchandise sold = gross profit equation
Component Percentage – The percentage relationship between one financial statement item and the total that includes that item
Period reporting – The life of the business is broken up into periods of equal length for reporting purposes.
To calculate the profit for the year and make decisions using the information.
Source Documents – Begin the process of entering transactions in the accounting system. Trigger the analysis of what happened. Begin the process of entering transactions in the accounting system.
Put the following ABC implementation steps in order ________.   A Use the activity overhead rates to assign overhead costs to cost objects. B Compute the allocation rates. C Trace overhead costs to cost pools. D Identify the activities and the overhead costs they cause.
taxable – Public health benefit
Credit Balance in Retained Earnings – normal, indicating that the corporation's lifetime earnings exceed lifetime losses and dividends
Net Profit – The difference between net profit and expenses when net profit is larger.
Matching Principle – the requirement under accrual basis accounting to record expenses in the same period as the revenues they generate, not necessarily the period in which cash is paid for them
Put the fоllоwing ABC implementаtiоn steps in order ________.   A Use the аctivity overheаd rates to assign overhead costs to cost objects. B Compute the allocation rates. C Trace overhead costs to cost pools. D Identify the activities and the overhead costs they cause.
Invoice – Form describing goods or services sold, and the price

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