Century 21 Accounting Chapter 6

The net profit percentage tells you – The proportion of each sales dollar which is profit for the year/net profit. A net profit percentage of 11% means every $1 of sales generated 11c of profit for the year. The gross profit percentage minus the total expense percentage
Revenues and expenses – Single-Step Income Statement divide accounts into what 2 groups?
(Objectives of financial statements)evolving – standards continue to change in response
Auditor – Checks that company/club accounts are "True and Fair."
Stockholder – am owner of one or more shares of a corporation
The value of scrap material can have either a high or low sales value relative to the product with which it is associated. – False
Merchandise/Inventory. – Goods purchased for resale at a profit.
Account vs. General ledger – Account is a record of increases and decreases in a specific asset, liability, equity, etc. A ledger is a combination of all accounts.
Paying attention to the feedback is important because of its dynamic nature while progressing through the steps in the control process.
#6. The purchase of inventory with cash: – has no net effect on total assets
An Independent accountant who provides accounting services to the public for a free. – Certified Public Accountant [cpa]
Bond vs note payable – Bonds-lots of people. Payed every 6 months
GAAP (Generally Accepted Accounting Principles) – Általánosan elfogadott könyvelési alapelvek
Pаying аttentiоn tо the feedbаck is impоrtant because of its dynamic nature while progressing through the steps in the control process.
VALUE CHAIN – CONSISTS OF MAJOR BUSINESS FUNCTIONS THAT ADD VALUE TO A COMPANY'S PRODUCTS AND SERVICES
Cashflow – repurchase of shares
repayment of 3 month commercial paper
dividends paid
Ending Retained Earning (equation) – beginning retained earning+ net income – dividends
Monetary unit – Transactions and events expressed in terms of money, often in the currency where a company operates or is registered

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply