Accounting 610 Chapter 1

Retained Earnings = – Beg Retained Earning + Net Income – Dividends
Baylor Inc. has a gross profit rate of 45%. During the period, the company had net sales of $400,000 and goods available for sale of $260,000. Beginning inventory was $35,000. Compute the dollar amount of the ending inventory.
A. $10,000
B. $40,000
C. $0
D. $180,000 – B
Going Concern – It is assumed that business will continue for several accounting periods into the future (life of the business is indefinite).
Net income – Revenue – Expense
Tax Accounting – Reports to the government
Closing Process – REID – Gives temporary accounts zero balances so they are prepared to accumulate new information for the next accounting period. Involves four closing journal entries. Income Summary account is used to aid in the closing process.
Required Income – Average Operating Assets x Required Minimum ROI
capital – the account used to summarize the owner's equity in a business.
True – T or F: keeping personal and business records separate is an application of the business entity concept.
Shares – Equity of a corporation divided into ownership units; also called stock
Which of the following is the site of hemopoiesis
Petty cash slip – a form showing proof of a petty cash payment
What is a debt that is expected to be paid within one year of the operating cycle – Current liabilities
Restrictive Endorsement. – An endorsement that limits the use of funds to the purpose stated (Example: "For Deposit Only")
Menchandiser – A business that sells merchandise, or goods, to customers.
Calculation of Age of Accounts Receivable – 365 days divided by Accounts Receivable Turnover
vencimiento de la declaración jurada – deadline for filing the tax return
List price – the retail price listed in a catalog or on an internet site
Which оf the fоllоwing is the site of hemopoiesis
Statement of Receipts and Payments – an accounting report which lists cash receipts and payments during a reporting period, the change in the bank balance, and the opening and closing balance
Calculate "gross profit" – = Net sales – COGS
Revenue, Income Statement – Type and Statement for: Interest Earned
Combination Journal. – A book of original entry which combines into one journal the features of the two-column general journal and a special journal.

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