MERCHANDISE
BUSINESS
BUSINESS
2/10, net/30
What is credit terms?
FIFO, LIFO, and weighted average?
What are the inventory cost flow methods?
A contract between the corporation issuing the bonds and the bondholders.
What is a bond indenture?
A bank reconciliation is part of
What is the internal control system?
The total earnings of an employee for a payroll period.
What is gross pay?
When the perpetual inventory system is used, inventory is shown on the income statement as...
What is cost of goods sold?
A method of inventory costing based on the assumption that the most recent inventory costs should be charged against revenue.
What is Last-in, First-out (LIFO)?
When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at.
What is a discount?
Deduction from the balance per bank statement.
What is the amount of outstanding checks on a bank reconciliation?
there is no general rule as to when an account becomes uncollectible.
What is when an account becomes uncollectible?
A method of inventory costing in which the cost of the units sold and in ending inventory is a weighted average of the purchase costs.
What is Weighted average?
If the market rate of interest is less than the contract interest, the interest expense would be lower than the bond interest paid.
What is selling the bond at a premium?
Control environment, risk assessment, control activities, information and communication, and monitoring
What are elements of internal control?
The payroll taxes levied against employees become liabilities at...
What is when the payroll is paid to employees?
Perpetual and periodic
What are the two inventory systems?
The method of inventory costing based on the assumption that the costs of goods sold should be charged against revenue in the order in which the costs were incurred.
What is First-in, First-out?
The market interest rate if higher than the contractual interest rate.
What is if bonds are issued at a discount?
A method of valuing inventory that reports the inventory at the lower of its cost or current market value (replacement cost).
What is the Lower-of-Cost-or-Market (LCM) Method?
Under the allowance method of accounting for uncollectible receivables debits this general ledger account to write-off a customer's account as uncollectible.
What is Allowance for Doubtful Accounts?
Under the perpetual inventory system the amount of each type of merchandise on hand is recorded in.
What is the inventory ledger?
beginning inventory + the cost of goods purchased or manufactured = cost of goods available – ending inventory
What is cost of goods sold?
Bonus:
The Cash account is debited and Bonds Payable is credited.
Bonus:
What is the journal entry to record bonds issued at face amount?
An account that has recorded errors in cash sales or errors in making change; and, is recorded as a debit and an expense on the income statement at the end of an accounting period.
What is the Cash Short and Over account?
The depreciation method that does not use residual value in calculating the first year's depreciation expense.
What is double-declining balance?