Accounting I Chapters 1 Thru 9 Century 21 Accounting

Partnership – -two or more owners
-spreads the workload
-UNLIMITED LIABILITY
Sales Discount. – A temporary owner's equity contra account used to record discounts given to customers as an incentive for prompt payment.
Petty cash – An amount of cash kept on hand and used for making small payments
assets – Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
an investment occurs (increases) when the company takes excess cash and purchases (invests in) a financial instrument (stocks or bonds) to earn more money – …
Sole Proprietorship – A business entity owned by one person who is legally responsible for the debts and taxes of the business.
What is the formula to calculate the accounts receivable turnovers ratio, and what does the formula measure? – Net sales divided by average net accounts receivable.
Cost/benefit constraint, Materiality constraint – Constraints in financial reporting
Answer the following questions using the information below:Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs.How many ticket packages will Ruben need to sell in order to achieve $60,000 of operating income?
4 "Special Journals" – Cash Receipts Journal- All cash transactions
Cash Payments Journal- Cash received
Revenue Journal- Receiving money just not in cash
Purchases Journal- Paying money just not in cash form
Income Statement – reports an accountants primary measure of performance for a business, revenues less expenses during the period (revenues, expenses, and net income)
Controller – The department head of the accounting department who has to work not only with the employees in the accounting and business office, but with all department heads.
Which of the following questions CANNOT be answered with CVP analysis?
a. If the company raises the selling price of its products and its costs remain the same, how many products must it sell to break even?
b. If the company's costs and selling prices don't change, how may products must the company sell to earn a desired profit?
c. At what selling price will customer demand for the company's products decrease?
d. Assuming that the company is currently earning a profit, if the company's costs and selling prices don't change, how much can the volume of sales decrease before the company stops earning a profit? – c. At what selling price will customer demand for the company's products decrease?
Answer the fоllоwing questiоns using the informаtion below:Ruben intends to sell his customers а speciаl round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs.How many ticket packages will Ruben need to sell in order to achieve $60,000 of operating income?
Prepare financial and tax reports – готовить финансовые и налоговые отчеты

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