Accounting: Debits & Credits

Equipment – …Is a Debit balance account.
JJ White planned to use $82 of material per unit but actually used $80 of material per unit, and planned to make 1,200 units but actually made 1,000 units.

The sales-volume variance is:
a. $2,000 favorable
b. $14,000 unfavorable
c. $16,400 unfavorable
d. $2,400 favorable – c. $16,400 unfavorable

Predetermined Overhead rate – Estimated overhead/ estimated DLH or Machine hours
44. Which of the following items would not appear in an income statement?
A. Salaries expense.
B. Advertising expense.
C. Service revenue.
D. Cash. – D. Cash.
purchase returns and allowances – a reduction in the cost of purchases associated with unsatisfactory goods
Ledger – Record containing all accounts (with amounts) for a business; also called general ledger. (p.74)
When a supplies internal service fund records a billing to the General Fund, the journal entry in the internal service fund will include:
Account number – The number assigned to an account
owners drawings – temporary account, OE, debit
double declining balance Method – straight line rate= 100%+ useful life. double declining rate= 2 x straight line rate. depreciation expense= double declining balance rate x beginning period book value
How does the matching expenses and revenue concept rate to adjustments ? – An adjustment is what ensures the concept of matching expense with revenue
When а supplies internаl service fund recоrds а billing tо the General Fund, the jоurnal entry in the internal service fund will include:
Financial Statement – 1.Income statement
2.Statement of Owner's Equity (Sole Prop & Partnership)
-corporation retained Earnings statement
3.Balance Sheet
Integrity – Adherence to moral and ethical principles; soundness of moral character; honesty
securities and exchange commission – US government agency which oversees the operations of the stock markets which trade stocks, bonds, and other types of securities.
Sales revenue less cost of goods sold is called – A. gross profit

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