Leaving Cert Accounting Ratios

All unfavorable overhead variances decrease operating income compared to the budget. – True
Trial balance – List of accounts and their balances at a point in time; total debit balances equal total credit balances
Unit of measurement concept – numbers with common values
tickler file – A file that contains a folder for each day of the month; invoices are placed in the folders according to their due dates.
Accrued revenues are – C. earned but not yet received or recorded.
Estimating Bad Debts – 1.) match expenses (estimated future uncollectible amounts) to the periods revenue was earned
2.) Methods: (1) apply small % to every $ of sales on credit. (2) conduct Aging Analysis of receivables and apply differing %'s based on each delinquency tier—record more bad debt expense (higher %) to the older items in the population
The inspection point is the
a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
b. point at which costs are allocated between normal and abnormal spoilage
c. point at which the calculation of equivalent units is made
d. None of these answers is correct. – a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
retained earnings calculation – beginning retained earnings
+
net income or – net loss

dividends paid to owners
=
ending retained earnings
Cash flows from investing activities – Cash flows from transactions that affect investments in the noncurrent assets of the company
Döhle bodies consist of __________.
Administration Expenses – those relating to the daily running of the business.Eg Rent, telephone
Sunk cost – any costs that has already been incurred and cannot be changed by any decision made now or in the future
Ending balance – Difference between the footings
Revenue accrual – Revenue and expense are recorded in accordance with the all events test
calculator tapes – print out of sales for the day
*statement of owner's equity* – A summary of the changes in owner's equity that have occurred during a specific period of time, such as a month or a year.
Order of asset section – current > long-term > plant > intangible
Döhle bоdies cоnsist оf __________.
Stock – Certificates that represent ownership of a corporation.
statement of CF – operating, investing, financing
Definition of Revenue – Revenue is an inflow of economic benefits (or saving in an outflow) in the form of an increase in asset (or decrease in liabilities) that increases owner's equity (expect for capital contribution)
Revenue is recorded in Cash Receipts Journal.
(Cash received from customers because we provided them a service)
Revenue includes Cash Fees, Cash Takings, Interest from Investment, Commission Revenue. Interest on investment
Expect from Capital Contribution, GST Collected & Refund, Debtors repayment, Loan from Bank.
Net Earnings – the value of goods and services provided to customers less the cost of providing to customers during a specific period of time. The period of time is typically a month, a quarter, or a year.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply