Accounting _

debit – Paid rent: _________ rent expense
debit – Increase accounts receivable
Entity Concept – a business is separate from its owners
allowance for doubtful accounts – current asset-contra, BS, credit
What is affected by an increase in revenue? – More cash, more accounts receivable, or less unearned revenue.
1st the revenue
2nd a balance sheet account changes
days in inventory – measure of the average number of days inventory is held; calculated as 365 divided by inventory turnover
#10. – subtract accounts payable from liabilities and then subtract paid rent from the equity and find new asset total
Linear cost behavior – cost behavior is said to be linear whenever a straight line is reasonable approximation for the relation between cost and activity
Schedule of Accounts Payable – A list of all balances owed to creditors.
A merchandising company has sales of $300,000, cost of goods sold of $200,000, and other expenses of $50,000.  It's net income is:
checking account – a bank account against which the depositor can drawn checks payable on demand
transposition error – an amount written with the digits in incorrect order
Goodwill and formula – Is the excess of the purchase price of a business over the fair value of the business's assets and liabilities.

Goodwill = Purchase Price – Fair value of identifiable assets and liabilities.

A merchаndising cоmpаny hаs sales оf $300,000, cоst of goods sold of $200,000, and other expenses of $50,000.  It's net income is:
Special journal – A journal designed for recording a particular type of transaction is known as a/an
revenue – money that your business takes in from the sale of goods or service rendered.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply