Financial Accounting Ch 1 Dj

trader – one who does business
Basic accounting equation – assets = liabilities + stockholders' equity
Collisons – Occurs when two or more people act in coordination to circumvent internal controls TEST
It can be inferred that when there is a high correlation between two variables, one is the cause of the other. – False
debit – enter an amount on the left side
A company determines the cost of goods sold each time a sale occurs in
A. periodic inventory system only.
B. a perpetual inventory system only.
C. both a periodic and perpetual inventory system.
D. neither a periodic nor perpetual inventory system. – B
(cash flows) loans to others – investing activities (subtract)
TMX Inc. uses the periodic method for costing inventory and had $400 of inventory on hand on January 1, 2017. TMX bought $700 of inventory during the first quarter of 2017 and had $200 of inventory on hand on March 31, 2017. What journal entry would TMX need to record on March 31, 2017 to recognize cost of goods sold?
accounts receivable – alıcılar
The control features of a bank account do not include
A. having bank auditors verify the correctness of the bank balance per books.
B. minimizing the amount of cash that must be kept on hand.
C. providing a double record of all bank transactions.
D. safeguarding cash by using a bank as a depository. – A
Amounts a business must pay in the future. – Accounts payable
Management Accounting – Provides internal decision makers who are charged with achieving the goals of profitability and liquidity with information about operating, investing, and financing activities.
Special – An endorsement used to transfer ownership of a check
TMX Inc. uses the periоdic methоd fоr costing inventory аnd hаd $400 of inventory on hаnd on January 1, 2017. TMX bought $700 of inventory during the first quarter of 2017 and had $200 of inventory on hand on March 31, 2017. What journal entry would TMX need to record on March 31, 2017 to recognize cost of goods sold?
Total Asset Turnover – Measure of a company's ability to use its assets to generate sales. Computed by dividing net sales by average total assets
What is the balance sheet? – The balance sheet is a statement of the financial position of the business at a specific point in time e.g. financial year end
Compound Journal Entries – A journal entry that is characterized by having multiple debits and/or multiple credits.
Financial Statement Order – income statement, Retained Earnings, Balance Sheet
Book value (undepreciated cost) – the cost of a fixed asset less its accumulated depreciation.

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