Wgu C213 Accounting For Decision Makers

Investing activities – Activities that increase or decrease the long-term assets available to the business; a section of the statement of cash flows.
What is the company's policy toward dividends and growth? – Retained earnings statement
Under the allowance method, estimated uncollectible receivables are credited to
A. Bad Debts Expense.
B. Accounts Receivable.
C. Allowance for Doubtful Accounts.
D. Uncollectible Accounts Expense. – C
Interest Coverage Ratio – EBIT/Interest Expense
Return on Total Assets – (Net Income + Interest Expense) / Avg. Total Assets

Profit generated by each $ of tot. assets

Fiscal Year – FY – Any twelve-month period for which annual accounts are kept (at Lehigh, July 1 through June 30).
Calculate "Total Capital" – = Long-term debt + Short-term debt + Common & Preferred equity
percent of sales method – percent x sales
Beginning inventory was $52000. Sales totaled $100,000. Gross Profit is $33000. Ending inventory was $36000 and selling expenses totaled 17,600

Purchases totaled: – Sales-CGS=GP so CGS must be $67000. Beg Inv + Pur-End Inv=CGS so… 100,000- ?+ 33000

52000+?-36,000+67,000

So purchases must be $51,000 for CGS to be 33,000

Accounting – Communicate informations to users so they can make informed decisions
There are _____ enlargements of the spinal cord where nerves supplying the extremities enter and leave.  
financial profit & loss – pénzügyi eredmény
Trial Balance – A proof of equality of debits and credits in a general ledger.
Asset Turnover – Net Sales / Average total assets
Australian Accounting Standards Board (AASB) – Sets accounting standards for all reporting entities in Australia
sales – The total amount charged customers for merchandise sold, including cash sales and sales on account.
external transactions – Exchanges between business entities that result in a change to the accounting equation.
There аre _____ enlаrgements оf the spinаl cоrd where nerves supplying the extremities enter and leave.  
periodicity assumption – life of a business can be divided into segments of time

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