Financial And Managerial Accounting Chapter 1 Terms

If Sales Revenue is $400,000, Cost of Goods Sold is $310,000, and Operating expenses are $60,000, the Gross profit is
A. $30,000.
B. $90,000.
C. $340,000.
D. $400,000. – B
Credit memorandum – A form prepared by the vendor showing the amount deducted for returns and allowances
Resources equation – Resources = Creditors' Claims + Owners' Claims
Creditor – is a person or business to whom the business owes money.
intangible assets – one of the common groups on the classified balance sheet

non-physical assets expected to be used for more than one year

Cash – Is money or any instrument that banks will accept for deposit and immediate credit to a company's account, such as check, money, or bank draft.
Purchase invoice – a document that supports each credit purchase
Define – Not-For-Profit organization – Not-For-Profit Organization is an organization whose "profits" are paid out (redistributed) to the community by providing services.
The matching principle provides the investor with more useful information on – the income statement
Periodic inventory – A merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand
According to research in this area, it is more likely that an entrepreneur will get a new business idea through a ________ relationship than the alternatives.
*ethics* – Moral principles that guide the conduct of individuals.
Under a periodic system, the company uses separate accounts to record freight costs, returns, and discounts.
A. True
B. False – TRUE
Financial statements – Financial reports that summarize the financial conditions and operations of a business.
accrual basis of accounting – reporting income when it is earned and expenses when they are incurred
Cost Principle – A principle that states that acquired assets and services should be recorded at there actual cost
Accоrding tо reseаrch in this аreа, it is mоre likely that an entrepreneur will get a new business idea through a ________ relationship than the alternatives.
certified public accountant – an individual who has met certain criteria and is thus allowed to perform audits of corporation
Gross Profit/ Net sales – Gross Profit Rate formula
Analyzing and recording process – collect source documents > record in a journal > post journal information to a ledger > prepare and analyze a trial balance

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