Uil Accounting

Calculating Revenue – Net income – Expenses
The journal entry to record the purchase of supplies on account:
A) credits Supplies and debits Accounts Payable
B) debits Supplies and credits Accounts Payable
C) credits Supplies and debits Cash
D) debits supplies expense and credits supplies – B) debits Supplies and credits Accounts Payable
Accounting concepts – Commonly accepted concepts that guide accounting personnel in their work
liability – An amount owed by a business
Net profit margin equation – Net income/net sales
postdated check: a check with a future date on it – postdated check: a check with a future date on it
Monetary Unit Assumption – It is assumed that only those items and events that can he measured in monetary terms are included in financial statements. An inherent part of this assumption is that the monetary unit is stable. Thus, assets purchased one year may be combined in the accounts with those purchased in other years even though the dollars used each year actually may have different purchasing power.
Work In Proces Inventory – Includes goods in the process of being manufactured.
Time period Assumption – Divides the economic life a business has into artificial time periods
segregation of duties – one person per one activity
The pupil is ____________:
Weighted Average – Calculate the average cost of the items in beginning inventory plus purchases made during the year
IFRS – international financial reporting standards

standards of the IASB

Which of the following appears on both the income statements of merchandising and service companies?
A. Cost of goods sold.
B. Gross profit.
C. Operating expenses.
D. Sales revenue. – C
Authorized Stock – Total number of shares available to sell to investors. Stated in companies articles of incorporation.
investment decrease when the company sells the investment for cash – …
Raw Materials – basic goods that will be used in production but have not yet been placed in production
Notes payable – from borrowing cash
The pupil is ____________:
Accounting Equation – Assets=Liabilities + Owner's Equity
Deferrals – Cash comes then you adjust
Transaction – An exchange between an entity and other parties.
A formal report that shows what an individual owns, what an individual owes, and the difference between the two – Net worth statement

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