What is a debit to Cash and credit to Owner Equity?
100
Products a company plans to sell.
What is Merchandise Inventory?
100
Revenue received in the form of an asset from a customer, and Cost recognized for the inventory sold
What are the two parts of a Merchandise sale?
100
A basic principle of allocating expenses to the period in which they are 'consumed.'
What is The Matching Principle?
100
Revenues minus Expenses
What are Profits & Losses?
200
Joe buys a boat for $50,000.
What is a debit to Boat (Fixed Asset) and a credit to Cash?
200
Beginning Inventory and purchases during the fiscal period.
What is Merchandise Available for Sale?
200
A sales transaction in which no cash is received.
What is a sale of merchandise on credit?
200
When expenses are small, we can aggregate them into a larger account.
What is the principle of Materiality?
200
This is what remains after Liabilities are subtracted from Assets.
What is Owner Equity?
300
Joe buys $10,000 fuel and supplies at the New Bedford Marina. He does not pay in cash.
What is a debit to Operating Expenses and a credit to Accounts Payable?
300
2/10, n/30
What are Credit Terms for a purchase
300
An inventory system in which a company sells merchandise, but does not record the cost of goods sold until it takes a physical count of the inventory.
What is the Periodic Inventory System?
300
This is the master set of accounting rules adopted by the American Institue of Certified Public Accountants (AICPA)
What are the Generally Accepted Accounting Principles (GAAP)?
300
Current Assets divided by Current Liabilities
What is The Quick Ratio (Acid Test)
400
Joe sells $100,000 of 60-day season Winter Flounder passes on December 1st. On December 31st, the adjusting entry is $50,000.
What is a debit to Unearned Revenue and a credit to Sales?
400
A reduction in cost of defective or unacceptable merchandise
What is a Purchase Allowance?
400
Under the Perpetual Inventory System, this method uses the most recent value of an item to record Cost of Goods Sold.
What is LIFO (Last In - First Out)?
400
This is a statement that shows the sources and uses of cash.
What is The Cash Flow Statement?
400
Ending Inventory divided by Cost of Goods Sold x 365
What is Days' Sales in Inventory?
500
On December 25th, Joe hires four mates for the Winter Flounder season. He pays them $1,000 each every two weeks. On December 31st, he creates a $2,000 adjusting entry.
What is a debit to Accrued Wages and a credit to Wages Payable?
500
FOB Factory and FOB Destination
What is the "free on board point" which determines who pays transportation costs?
500
An accounting principle which requires that inventory be reported at the market value (cost) of replacing inventory when market value is lower.
What is LCM?
500
The little voice inside of you that tells you what is right and what is wrong.
What is Ethics?
500
We treat a year as having this many days for computing interest on promissory notes.