A beer bar
An aircraft manufacturer
A supermarket that is part of a national chain
An independently owned art gallery with a manual account system
Taking an annual physical inventory
Recording the revenue from sales transactions
Recording the cost of merchandise sold as sales occur
None of the above
Use a periodic inventory system
Maintain an inventory subsidiary ledger
Take a complete physical inventory each day
Debit all purchases of merchandise directly to the Cost of Goods sold account
Inventory account
Sales Account
Purchases account
None of the above
$334,000
$145,000
$141,000
Some other amount
Balance Sheet, income statement, statement of retained earnings
Income statement, statement of retained earnings, balance sheet
Income tax return, income statement, balance sheet
Income statement, statement of cash flows, balance sheet
A net loss
Net income
A reduction of net worth
Dividends have been declared
Financial statements are prepared only at year-end
Adjusting entries are made only at year-end
Revenue and expense accounts reflect year-to-date amounts throughout the year
Monthly and quarterly financial statements cannot be prepared
Within a month or less
Within 3 months
Within a year or less
Within 6 months or less
Cost of Goods Sold
Gross Profit
Sales Discounts
Purchases
Net sales and the cost of goods sold
The cost of merchandise purchased and the cost of merchandise sold
Net sales and net income
Net sales and all expenses
That after 10 days 2% interest is charged
That there is a 10% discount if payment is received within 30 days
That there is a 2% discount if payment is received within 10 days, otherwise, full payment is due within 30 days
There is a 10% discount if paid immediately and 2% if paid within 30 days
Provide a chronological record of all business transactions
Provide details about the individual items comprising the balance of a general ledger account
Enable accountants to prepare financial statements
Provide persons outside of the organization with detailed information about the company's operations
On entry recognizes the sales revenue, and the other recognizes the cost of goods sold
One entry records the purchase of the merchandise, and the other records the sale
One entry records the cost of goods sold, and the other reduces the balance in the Inventory account
One entry updates the general ledger, and the other updates the subsidiary ledgers
Debit to Purchase Discount Lost
Credit to Purchase Discount Lost
Debit to Sales Discount
Credit to Sales Discount
Income Statement
Balance Sheet
Cash flow statement
Owner's equity statement
Adding $18 to the bank statement
Subtracting $18 from the bank balance
Adding $18 to the book balance
Subtracting $18 from the book balance
Consist of cash and cash equivalents
Are reported at cost in the balance sheet
Included short-term investments i marketable securities and receivables, as well as cash
Are not very productive assets and should be kept to a minimum in a well-managed company
Increase the balance per depositor's records
Decrease the balance per depositor's
Increase the balance per the bank statement
Decrease the balance per the bank statement
Reduce income
Reduce an expense
Not change income or total assets
Increase total assets
Expenses + Taxes = Net Income
Revenue - Expenses = Net Income
Revenue - Expenses + Retained Earnings = Net Income
Revenue - Dividends = Net Income
Inventory + Gross Profit = Retained Earnings
Beginning Retained Earnings - Gross Profit - Inventory = Ending Retained Earnings
Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings
Beginning Retained Earnings + Dividends - Gross Profit = Ending Retained Earnings
Dividends
Business Earnings
Income
Business Losses (Depreciation)
Dividends
Business Earnings
Business Losses (Depreciation)
Profit
+ Deposits in Transit
- Deposits in Transit
+ Deposits by Bank
- Deposits by Bank
+/- Bank Adjustments
+/- Book Adjustments
+ Outstanding Checks
- Outstanding Checks
- Service Charge
+ Service Charge
+ NSF Checks
- NSF Checks
Wait!
Here's an interesting quiz for you.