Formulas
The accounting equation is described as ASSETS =
Liabilities + Equity
An Income Statement can be simplified down to Revenue - ___________ = ____________
Revenue - Expenses = Net Income
Complete this Journal Entry
Paid utilities expense of $460
To explain the difference between periodic and perpetual inventory systems I would say that
Periodic: done in intervals, less goods, requires a physical count
Perpetual: POS system, keeps a running record, better control over merchandise, bar codes, requires a physical count
Chris' favorite car manufacturer is
Porsche
Total Liabilities / Total Assets
A Balance Sheet looks like this
Assets on the left, and Liabilities and Equity on the right
The Cash Ratio is:
Cash - 9,000
Cash Equivalents - 21,000
Accounts Receivable - 3,500
Total Current Liabilities - 40,000
(Cash + Cash Equivalents) / Total Current Liabilities
(9,000 + 21,000) / 40,000 = .75
Separation of Duties could be described as this
The person who opens the bank statement should not also be the person who is reconciling cash.
What are the 5 Benedictine Values
Community, Hospitality, Respect, Stewardship, Love of Learning
The Current Ratio is:
Accounts Receivable: 3,600
Equipment: 34,700
Accounts Payable: 4,900
Notes Payable (long-term): 7,600
Total Current Assets / Total Current Liabilities
7.8163
Fill out this Balance Sheet:
The allowance for bad debts is:
ABD balance - 1,200
Uncollectible Receivables - 2,000
Bad Debt Expense - 3,100
ABD credit balance: 1,200
UR credit balance: 2,000
BDE debit balance: 3,100
2,300
Collusion could be described as this
Two or more people working together to overcome internal controls
This is the longest river in the world
Amazon
The Asset Turnover Ratio is:
Average Total Assets - 250,000
Net Sales - 320,000
Net Sales / Average Total Assets = Asset Turnover Ratio
1.28
Order the accounts per the unadjusted trial balance rules
current assets
current liabilities
equity
revenue
expenses
Gross Pay for next period: 5,800
FICA-OASDI is 6.2% & wage base is 147,000
How much FICA-OASDI will be withheld from the paycheck
248
The date when a note is due is the
This is the year that Picasso died
1973
What is the Times-Interest-Earned:
Net Income: 144,495
Income Tax Expense: 32,205
Interest Expense: 9,500
(net income + income tax expense + interest expense) / interest expense = 19.60
Describe the Statement of Retained Earnings
beg RE
+ Net Income
- Dividends
End RE
Explain the three types of inventory methods
FIFO, LIFO, Weighted Average
Which investment would be classified as a held-to-maturity debt investment:
10 year bond
80% stock ownership in a subsidiary
100% ownership in voting stock of a supplier
10 year bond
The Bible