Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.
100
What are Cost of Sales?
Cost of Goods Sold or COGS refer to the carrying value of goods sold during a particular period.
100
What is Assets-Liabilities=...?
Owner's Equity
100
What does stepped cost mean?
Stepped cost refers to the behavior of the total cost of an activity at various levels of the activity.
200
Whats is C.O.D. short for?
Cash on Delivery
200
What is Account Payable?
Account Payable is an obligation to a supplier or vendor for goods or services that were provided in advance of payment.
200
What is an expense?
The cost required for something; The money spent on something.
200
How are the balance sheet and income statement connected?
The connection between the balance sheet and the income statement results from the use of double-entry accounting or bookkeeping and the accounting equation Assets = Liabilities + Owner's Equity
200
What is the equation for total cost?
Total Variable Cost+ Total Fixed Cost
300
What is the purpose of the cash flow statement?
The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.
300
What is Inventory?
A complete list of items such as property, goods in stock, or the contents of a building.
300
What are revenues?
Income.
300
What is the difference between liability and debt?
The word debt is used more narrowly to mean only the formal, written financing agreements such as short-term loans payable, long-term loans payable, and bonds payable.
300
What is the equation for Break-Even Point?
Total-Fixed Costs/Contribution Margin per Unit
400
How can a company have a profit but not have cash?
A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company's cash receipts and cash disbursements.
400
What is a Current Liability?
Amounts due to be paid to creditors within twelve months.
400
What is the COGS equation?
Beginning Inventory + Inventory Purchases – End Inventory = Cost of Goods Sold
400
Where does the purchase of equipment show up?
Statement of Cash Flows
400
How do you reduce a company's break-even point?
To reduce a company's break-even point you could reduce the amount of fixed costs.
500
If there is a number with parenthesis around it what does it mean?
It is negative
500
Current Assets
Cash and other assets that are expected to be converted to cash within a year.
500
How do you calculate Gross Profit?
Revenue - COGS
500
What is depreciation?
Depreciation is the assigning or allocating of a plant asset's cost to expense over the accounting periods that the asset is likely to be used.
500
What is the difference between Contribution Margin and Contribution Margin Ratio?
Contribution Margin is Net Sales minus the variable product costs and the variable period expenses. The Contribution Margin Ratio is the Contribution Margin as a percentage of Net Sales.