Accounting 202 Chapter 10

A form on which a brief message is written describing a transaction – memorandum
Know how to calculate cost of goods sold (COGS aka Cost of Sales, Cost of Revenues) and gross profit using various mathematical approaches: Sales – Gross Profit = COGS – 9.
funds-flow analysis – this technique is employed to determine the major uses and sources funds
Fair Value Principles – assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability)
Dividends – distribution of earnings from the company to shareholders
sales invoice – an invoice used as a source document for recording a sale on account
Liabilities – Something owed to another business entity (creditors claims on assets
preferred dividends are calculated by: – number of shares X par value X stated percentage or $ amount per share
After reading Cortes's “Second Letter to the Spanish Crown,” describe how he and his men changed the religious practices of the Aztecs in Tenochtitlan.
financial statements – financial reports that summarize the financial condition and operations of a business.
49. Nina Corp. had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnings balance at the end of year three is $1,100, what was the total amount of dividends paid over these three years?
A. $500.
B. $0.
C. $9,100.
D. $8,000. – D. $8,000.
Outstanding Shares – The number of shares issued less the number of shares held as treasury stock.
Accounts payable 300
Merchandise Inventory 300 – Journal Entry: The buyer returns inventory costing $300 how does the buyer recorde this
When actual input data from past periods is used to develop a budget:
a. past inefficiencies are excluded
b. expected future changes are incorporated
c. information is available at a low cost
d. audited financial information must be used – c. information is available at a low cost
quick or acid-test ratio – measures immediate short-term liquidity
Current ratio – Measure a company's ability to pay current liabilities
After reаding Cоrtes's “Secоnd Letter tо the Spаnish Crown,” describe how he аnd his men changed the religious practices of the Aztecs in Tenochtitlan.
A journal provides – a chronological record of transactions
interest payable – current liab
Expense – the cost of providing goods and services

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