Ch 5 Accounting For Merchandising Operations

Going Concern Assumption – The assumption that a business will continue to operate indefinitely.
The difference between net sales and cost of goods sold – Gross margin
Current ratio – the relationship between current assets and current liabilities; calculated by dividing the dollar amount of current assets by the dollar amount of current liabilities.
balance sheet equation – assets = liability + equity
Working Capital – Is the excess of a firm's current assets over its current liabilities
Income statement – A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time
Official term to describe a bounced cheque – NSF cheque
Account Form Balance Sheet – A balance sheet that lists assets on the left and liabilities and owner's equity on the right (see Report Form Balance Sheet)
unit of measure concept – transactions always in dollars
Describe, analyze and evaluate the development of the United States Constitution. You should cover the major issues and debates concerning the Constitution and explain how they were resolved in the final draft. 
Which of the following statements correctly describes the reporting of cash?
A. Cash cannot be combined with cash equivalents.
B. Restricted cash funds may be combined with Cash.
C. Cash is listed first in the current assets section.
D. Restricted cash funds cannot be reported as a current asset. – C
asset – can be potentially converted to cash
referee – One who supervises a game or match to ensure that the rules are adhered to .
What to do when there's a net loss in Budgeted Income Statement – where a net loss is predicted the owner can respond by:
– cutting down their expenses
– increase cash fees by: changing prices, advertising, providing promotions/discounts
– seeking cheaper suppliers
– making prices cheaper to increase customer demand
– Examining roasters to ensure appropriate staffing levels.
creditor – a person or business that loans money to others
Describe, аnаlyze аnd evaluate the develоpment оf the United States Cоnstitution. You should cover the major issues and debates concerning the Constitution and explain how they were resolved in the final draft. 
Calculation of Cost of Goods Sold (COGS) [expense on Income Statement] – Beginning Inventory
+Purchases during the year
-Ending Inventory
=Cost of Goods Sold
Descending Order Of Liquidity – Assets that are arranged from the most liquid asset to the least liquid assets.
GAAP – requires separation of product costs and period costs
Accumulated Depreciation – Buildings – Asset

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply