What act was passed in congress in 2002 in an attempt to improve financial reporting and restore investor confidence?
What is Sarbanes Oxley Act (SOX).
100
What does EFT stand for?
What is electronic funds transfer.
100
What do FIFO and LIFO stand for?
What is First In First Out, Last In First Out.
100
What type of account is Allowance for Doubtful Accounts, and what is it?
What is Contra-asset, and it is the estimated dollar value of uncollectible accounts receivable.
100
What is the debt-to-asset ratio?
What is Total Liabilities/ Total Assets
200
What are the three parts to the Fraud Triangle?
What is Incentive, Rationalization, and Opportunity
200
What action do we take when the company's cash account doesn't equal the the banks cash account?
What is Bank Reconciliation.
200
Companies must report inventory at ___________?
What is Lower of Cost or Market.
200
What are the two methods of estimating Bad Debt Expense (BDE)?
What is The aging method, and the percentage of credit sales.
200
What is the asset turnover ratio?
What is Total Revenue/ Average Total Assets
300
What are the different parts to the Multiple Step income statement?
What is Income from Operations, other revenues and expenses, income before income tax, and income tax expense.
300
What type of account is Sales Returns and Allowances?
What is Contra-Revenue
300
What do the terms 2/10, n/30 mean?
What is you get a 2% discount if you pay within 10 days, or you pay all of it (net) in 30 days.
300
What transaction (adjusting entry) is recorded when customers don't pay the full amount?
What is dr. Bad Debt Expense
cr. Allowance for Doubtful Accounts
300
What is the net profit margin ratio?
What is Net income/ total revenue
400
What are the four general purpose financial statements?
What is income statement, balance sheet, statement of cash flows and retained earnings statement.
400
What transactions do we do to preform a bank reconciliation?
What is
Bank: Add deposits in transit, Deduct outstanding checks.
Company's books: Add interest earned and EFT, Deduct service charge, NSF check, and recording errors.
400
What is the difference between FOB destination and FOB shipping point?
What is FOB destination means that the sale is recorded when the goods reach their destination, and FOB shipping point means that the sale is recorded when the goods leave the seller's shipping department.
400
After you make the adjusting entry, what transaction do you make to remove the uncollectible amount?
What is dr. Allowance for Doubtful Accounts
cr. Accounts Receivable.
400
What is the gross profit percentage?
What is (Net Sales-COGS)/Net Sales x 100
500
Who are the (5) various groups who use the financial statements?
What is Managers, Board of directors, Creditors, investors and the government.
500
What are the five principle internal controls?
What is establish responsibility, segregate duties, restrict access, document procedures, and independently verify.
500
What is the formula to find Cost Of Goods Sold (COGS)?
What is Beginning inventory+Purchases=Goods Available For Sale-Ending inventory= COGS
500
What is the interest formula?
What is Interest(I)= Principal(P) x Interest Rate (R) x Time(T)
500
What is the Receivable turnover ratio?
What is Net Sales Revenue/ Average Net Receivables