Accounting Chapter 1 Vocabulary

Gain on Disposal – …Is a Credit balance account.
temporary accounts – accounts used to collect infromation that will be transferred to a permanent capital account at teh end of the accounting period
S.U.T.A. – The abbreviation for state unemployment tax act.
People Interested in a Company's Financial Information – -owners of the business (shareholders)
-managers
-potential investors
-banks
-the government (for taxation purposes)
liabilities – creditors' claims on assets
Bad Debts – Accounts receivable that are uncollectible
Supplies – Supplies
Asset
Balance Sheet
Debit
Lessor – Party to a lease who grants another party (the lessee) the right to possess and use its property
International Accounting Standards Board (IASB) – issues International financial reporting standards (IFRS)
Use the below information to answer the following question.   Income Statement     For the Year   Net sales $631,000   COGS   442,220   Depreciation     28,100       EBIT $160,700   Interest     14,900       Taxable income $145,800   Taxes     49,600       Net income    96,200         Balance Sheet     Beginning of Year End of Year   Cash $  38,200 $43,700   Accounts receivable     91,400   86,150   Inventory   203,900 214,600   Net fixed assets   516,100 537,950         Total assets 849,600 $882,400             Accounts payable $136,100 104,300   Long-term debt   329,500 298,200   Common stock ($1 par value)     75,000   82,000   Retained earnings  309,000 397,900          Total Liab. & Equity $849,600 882,400             What is the quick ratio at the end of the year? 
When recording depreciation does the cash lost from the sale of the equipment go on the debit or credit side? – debit
Which of the following statements regarding manufacturing overhead allocation is FALSE?
a. It includes all manufacturing costs that cannot be directly traced to a product or service.
b. The costs can be grouped in either a single indirect-cost pool or in multiple indirect-cost pools.
c. Total costs are unknown at the end of the accounting period.
d. Allocated amounts are debited to Work-in-Process. – c. Total costs are unknown at the end of the accounting period.
cost accounting system – measures, record, and report product cost
cost flow for a time period – beginning inventory + net purchases = merchandise available for sale
end inventory + cost of goods sold = the same thing
Use the belоw infоrmаtiоn to аnswer the following question.   Income Stаtement     For the Year   Net sales $631,000   COGS   442,220   Depreciation     28,100       EBIT $160,700   Interest     14,900       Taxable income $145,800   Taxes     49,600       Net income    96,200         Balance Sheet     Beginning of Year End of Year   Cash $  38,200 $43,700   Accounts receivable     91,400   86,150   Inventory   203,900 214,600   Net fixed assets   516,100 537,950         Total assets 849,600 $882,400             Accounts payable $136,100 104,300   Long-term debt   329,500 298,200   Common stock ($1 par value)     75,000   82,000   Retained earnings  309,000 397,900          Total Liab. & Equity $849,600 882,400             What is the quick ratio at the end of the year? 
ganancia pérdida ordinaria del ejercicio o período – ordinary income loss for the year, period
dentist – one who attends to people's teeth
Revenues – Gross increase in equity from a company's business activities that earn income; also called sales.
segmented I/S – info for evaluating the profitability and performance of divisions

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply