Financial Accounting Ratios

Rent Expense – Normal Balance: Debit
Type of Account: Expense
Financial Statement: IS
Cost of goods sold – Income statement
Less: Net sales revenue
FASB? – Financial accounting standards Board
-reports to the security exchange (SEC)
-establish the GAAP
-codified how Gaap is organized and communicated
Calculate "Gross Interest Expense" – = (Net Interest Expense + Interest Income)
Social security tax – A federal tax paid for old age, survivors, and disability insurance
S.U.T.A – State Unemployment Tax Act
Accounting Period Cycle – changes in financial information are reported for a specific period of time in the form of financial statements
"Period of Time" – Comprehensiv Income
debit – Any transaction that increases the assets of a firm or reduces liabilities.
Which one of the following voltage potentials occurs as the result of chemical equilibrium involving electron transfer reactions?
The balance in the accumulated deprection account at the end of the second year of operations will equal – depreciations expense for all prior years
Monetary Unit Assumption, Economic Entity Assumption, Periodicity Assumption, Going Concern Assumption, Accrual Basis – Five Assumptions of Financial Reporting
What is a ledger account? – Is an accounting tool that records changes in the value of something
Which оne оf the fоllowing voltаge potentiаls occurs аs the result of chemical equilibrium involving electron transfer reactions?
Operating Cash flows/Average total assets – Cash Return on Assets
How long is a fiscal period typically? – 1 year
Financial Accounting – The field of accounting that provides economic and financial information for investors, creditors, and other external users.

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