Ch 4 Completing The Accounting Cycle

SOX is a result of what – enron
There are two parties to a check: the maker and the payee.
A. True
B. False – FALSE
Income Statement – a financial statement showing the revenue and expenses for a fiscal period.
Net loss – This occurs when expenses are greater than revenue for a given accounting period.
Adjusting Journal entries – accrued liablility
accrued revenue
prepaid expense
unearned revenue
production report – a document that summarizes the manufacturing
activity that takes place in a process department for a given
period of time.
Cost of Goods Available for Sale – The total cost spent on inventory that was available to be sold during a period.
Legal capital – entire proceeds are credited to a no-par stock account. debit cash, credit common stock, no-par value
calculation of CS no-par value: $X Issue price X number of no-par shares
Issued Shares – Represent the total number of shares of stock that have been sold.
What is the name of the last, and most important, stone to be placed in an arch?
Statement of Cash flows – identifies cash inflows(receipts) and cash outflows (payments) over a period of time.
For which form of business ownership(s) are the owners not legally distinct from the business? – Partnership & Proprietorship
Depreciation – Is the process of allocating the costs of these assists over their expected useful lives.
Current Liabilities – Debits to be paid in one year or operating cycle.
Profitability and Performance Measures – Profit Margin
Gross Profit Margin
COGS as Percentage of Sales
Net Income as Percentage of Sales
Interest Coverage Ratio (Times Interest Earned Ratio)
Fixed Charge Coverage Ratio
Earnings Per Share (Basic and Diluted)
Price-Earnings Ratio
Return on Equity
Return on Capital (Investment)
Return on Assets
*Indicating how much company keeps of every dollar it makes; important to investors
Value added activity – Process time
Whаt is the nаme оf the lаst, and mоst impоrtant, stone to be placed in an arch?
Accrued employee benefits – Balance sheet
Current liab.
adjusted trial balance – verify equality of total debit & credit balances before financial statements are prepared

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