I would "depreciate" that!
This type of depreciation is the most commonly-used form by businesses.
What is straight-line depreciation?
This type of journal entry is use to bring the balance sheet and income statement up to date, such as expenses that have been recorded but need to be divided up between two or more accounting periods.
What is an adjusting entry?
In the formula I=PRT, the "R" represents what?
What is rate?
The term for the result of calculating the price of merchandise purchased for resale, including freight charges, and discounts and returns, if applicable and the effect of changes in the merchandise inventory account.
What is Cost of Goods Sold?
The account that is debited when merchandise acquired for resale.
What is Purchases?
When adjusting for depreciation at the end of an accounting cycle, the amount of lost value is debited to an expense account and the credit is made to this type of an account?
What is a contra-asset?
Both SYD and DDB are categorized as this type of depreciation methods.
What is accelerated?
What is the maturity value of a $600 note at 6% for 30 days?
What is $603?
A contra-cost account that offsets the Purchases account and is used to record merchandise that has been returned to a vendor.
What is Purchases Returns and Allowances?
Unearned revenue is classified as what type of an account?
What is a liability?
This is the value of an asset after it has been depreciated.
What is book value?
This method of estimating uncollectible accounts assigns a higher percentage as the amount owe is further and further past its due date.
What is aging of receivables method?
A bank deducts the interest it charges from a note's value, which is a process called this.
What is discounting?
The account used when recording payment for the cost of having merchandise delivered.
What is the Freight-In account?
The type of discount that shows 2% discount is offered for paying an invoice within 10 days of the invoice date.
What is a cash discount?
This type of a depreciation method is calculated based on output of the asset.
What is units-of-production method?
This accounting method reports revenues when they are earned (not when cash is received) and expenses when the occur (even if payment takes place later).
What is accrual based accounting or the accrual method of accounting?
Accured interest payable is reported as this on the balance sheet.
What is (current) liability.
This inventory valuation method assumes that the latest inventory will remain in inventory and the oldest inventory has presumably been sold.
What is FIFO?
The name given to the ledger (that contains individual creditors and customer accounts) that is used when special journals are being used.
What is a subsidiary ledger?
In this form of accelerated depreciation, the depreciable amount is not taken into consideration because deprecation begins with the cost of the asset.
What is double-declining balance method?
This ratio is critical for a company because it is an indication of how likely the company will be able to collect on its accounts receivable and is calculated using this formula.
Accounts Receivable Turnover Ratio:
Credit Sales for the Year/Average Accounts Receivable
A non-interest bearing note is recorded as a debit to this account but later transferred to Interest Expense at the end of the accounting period.
What is "Discount on Notes Payable"?
This is the result of subtracting COGS from Net Sales.
What is gross profit (or loss)?
The term used when shipping costs are paid by the seller.
What is FOB Destination?