Accounting: Debits & Credits

Simple Rate of Return – represents the return on investment from an income statement perspective and is not based solely on cash flows. Depreciation is an expense that is reported on the income statement even though cash is paid in a different period than the asset is purchased.
d – The multiple-step income statement for a merchandising company shows each of the following features except:
*gross profit.
*cost of goods sold.
*a sales revenue section.
*investing activities section.
purchase invoice – records purchase on account
Revenue recognition principle – The principle that a revenue should be recorded when a resource has been earned
Income Statement – A statement that reports income for a particular time period.
libro inventarios y balances – inventory book
What is a type of company resources that is not intended for sale to customers – Plant Assets
Blinka Retailers accepted $50,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Blinka Retailers will include a credit to Sales of $50,000 and a debit(s) to
A. Cash $48,000/ Service Charge Expense $2,000
B. Accounts Receivable $48,000/ Service Charge Expense $2,000
C. Cash $50,000
D. Accounts Receivable $50,000 – A
limited liability company – combines partnership & corporation (10%)
Present value of future cash flows – present value of cash flows into which the asset is expected to be converted in the ordinary course of buisiness. time value to money.
Switch statements can always be used in place of if/else statements.
Average accounts receivable – (Beginning accounts receivable + Ending accounts receivable) divided by 2.
Unit-level measures can distort product costing because the demand for overhead resources may be driven by batch-level or product-sustaining activities. – True
Credit side – The right side of a standard account is called the
Stockholder's Equity – Money the owners invested in the company to receive Common Stock, plus all the Net Income the company has kept (retained) in the company since it started business
waste disposal costs – Entsorgungskosten
"retained earnings" – is the amount of cumulative profits and losses kept by the company since the first day of operations
Accounting System – A process designed to accumulate, classify, and summarize financial data.
Switch stаtements cаn аlways be used in place оf if/else statements.
net sales – sales minus sales returns and allowances minus sales discount
Endorser – the person who orders the bank to make payment of a financial instrument is properly termed a/an

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