Uil Accounting

Deferral – an adjustment of an asset or liability for which the business paid or received cash in advance. Ex: prepaid insurance.
Interest expense – This expense is incurred when a business is using somebody else's money.
"Gross Profit Margin" Classify, Calculate, and Interpret – Operating Profitability Ratio

= [ Gross Profit / Revenue ]

Analysts should be concerned if this ratio is too low.
LOW: Prices are are not high enough or costs are too high
HIGH: Increase in prices or reduced costs

The revenue recognition principle dictates that revenue should be recognized in the accounting records – B. When it is earned
Net income calculated – Net Income= Revenues – Expenses
long-term investments – investments in securities
investments in tangible fixed assets not currently in operations
investments set aside in special funds
investments in nonconsolidated subsidiaries
Double Entry Accounting system – the total amount debited must always equal there total amount credited
Normal Balance of Petty Cash – Debit
Which of the following best describes income inequality in the USA? 
accounts payable – Bought supplies on account: credit _________
1.Revenue (increase)
2. Expenses (increase)
3. Draw (increase) – 1. increase O.E
2. Decrease O.E
3. Decrease O. E
long-term liabilities – Obligations not due within one year or the operating cycle, whichever is longer.
Periodic Income Statement – Cost of Goods Sold
Merch. Inventory
Purchases
Less Purch. R&A
—————-
Net Purchases
Freight-In
——————-
Net cost of purchases
Cost of Goods Available for Sale
Less Merch. Inventory
——————
Cost of Goods Sold
Which оf the fоllоwing best describes income inequаlity in the USA? 
internal transactions – Exchanges within a business entity that might or might not affect the accounting equation.
Торговые активы – Trading assets
Sole Proprietorship – A business owned by one person

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