Ch 4 Completing The Accounting Cycle

POS (Point-of-Sale) Terminal – A computer used to collect, store, and report all the information of a sales transaction.
Net loss – the difference between gross profit and expenses when expenses are larger.
trading result – Betriebsergebnis
Inventory – items held only for sale to customers are called inventory
Receipt – Business form acknowledging cash received
prepaid rent – current asset, BS, debit
relevance – should include all information that s useful for decision making and exclude information that is not
estado de flujo de efectivo, estado de origen y aplicación de fondos – statement of cash flows
Account Balance – The difference between the amounts recorded on the two sides of an account.
In a job-costing system, a manufacturing firm typically uses an indirect-cost rate to estimate the __________ allocated to a job.
a. direct materials
b. direct labor
c. manufacturing overhead costs
d. total costs – c. manufacturing overhead costs
State laws may not regulate a business' s disposal of toxic wastes.
Unit-level measures can distort product costing because the demand for overhead resources may be driven by batch-level or product-sustaining activities. – True
Realization of revenue – Revenue is recorded at the time goods or services are sold
Normal side balance Expenses – Dr
interrogator – one who asks questions of someone aggressively over a long.
Uncollectible accounts – Accounts receivable that cannot be collected.
Stаte lаws mаy nоt regulate a business' s dispоsal оf toxic wastes.
The accountant for Exeter Corp. failed to make the adjusting entry to record depreciation for the current year. The effect of this error is:
A) Assets and expenses are understated; net income is understated
B) Assets, net income, and stockholders equity are all overstated
C) Assets are overstated; and stockholders equity are all overstated
D) Net income is overstated and liabilities are understated – B) Assets, net income, and stockholders equity are all overstated
EBIT Margin Ratio(Relative measure) – EBIT/Sales

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