Formulas
Vocabulary
Formulas 2
Word Problems
Vocabulary 2
100
Assets = Liabilities + __________________
What is owner's equity?
100
Earnings from the sale of goods or the performance of service
What are total sales?
100
Total Current Liabilities + Total Long-term Liabilities = _____________________
What is total liabilities?
100
The total assets are $150,000 and the total liabilities equal $70,000, but I don't know how much Owner's Equity is.
What is $80,000?
100
The economic resources owned by a company
What are assets?
200
Beginning Capital + Net Income - Owner's Equity = ________________
What is Ending Capital Account?
200
The overhead or cost incurred in operating a business
What is operating expense?
200
Total Current Assets + ____________________ = Total Assets
What is total plant and equipment?
200
John's business had $80,000 in revenues and $85,000 in expenses. John is wondering if he made or lost money and how much.
What is a net loss of $5,000?
200
The company's debts and obligations
What are liabilities?
300
Net Sales - Cost of Goods Sold = __________________
What is Gross Profit from Sales?
300
The difference between the total sales and the sales returns and allowances
What are net revenues or net sales?
300
The beginning inventory is $3,560, purchases made are $2,800, and ending inventory is $3,800. Now I need to calculate cost of goods sold.
What is $2,560?
300
Assets that can be converted to cash within one year
What are current assets?
400
Cost of Goods Sold = Cost of Beginning Inventory + _______________ - Cost of Ending Inventory
What are Purchases?
400
Refunds of adjustments for unsatisfactory merchandise or service
What is sales returns and allowances?
400
Revenues - Expenses = _________________
What is net income or loss?
400
A company's net sales for the month are $25,000. The cost of goods sold for the same period is $7,550. What is the company's gross profit for the month?
What is $17,450?
400
Promissory notes and other amounts owed to the business; money advanced or loaned to others by the business
What is notes receivable?
500
Net Sales = Gross Sales - _________________
What is Sales returns and allowances?
500
The amount of earning reinvested in the business to stockholders in the form of dividends
What is retained earnings?
500
+/- Cashflow from Operating Activities +/- Cashflow from Investments +/- Cashflow from Financing = ______________________
What is change in cash?
500
Sally's Accounting Firm had a gross profit of $125,225 in April. The firm also reported the following expenses: salaries and wages, $98,000; rent, $10,500; utilities, $1,750; advertising, $900. Now I'm wondering if they had a net loss or income and how much it was.
What is $14,075 net income?
500
Reports inflows and outflows of cash during the accounting period in the categories of operating, investing, and financing
What is the Statement of Cash Flows?
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