sales revenue - cost of goods sold Gross Profit = ________ - ___________ Cash can be paid Purchased inventory on account for $10,000 When a liability increases, it is a ______.

Gross Profit = ________ - ___________

(400 + 600)/10,000 = 10% How is the average days in inventory calculated? Assume an investor provides a company with $10,000 cash by purchasing stock at the end of 2023, receives $400 in dividends from the company during 2024, and sells the ownership interest (shares) at the end of 2024 for $10,600. What is the rate of return? The Trident Corporation's results for the year ended December 31, 2024, include the following material items: Sales revenue = 8,200,000 Cost of goods sold = 4,800,000 Selling and administrative expenses = 2,000,000 Gain on sale of investments = 300,000 Loss on discontinued operations = 1,200,000 Restructuring costs = 280,000 Trident Corporation's income from continuing operations before income taxes for 2024 is: How is return on equity calculated?

Assume an investor provides a company with $10,000 cash by purchasing stock at the end of 2023, receives $400 in dividends from the company during 2024, and sells the ownership interest (shares) at the end of 2024 for $10,600. What is the rate of return?

5% Creecher purchased $200,000 worth of Troman stock, received four quarterly dividends of $1,000 each, and sold the Troman shares for $206,000 after one year. What is Creecher's rate of return? The Trident Corporation's results for the year ended December 31, 2024, include the following material items: Sales revenue = 8,200,000 Cost of goods sold = 4,800,000 Selling and administrative expenses = 2,000,000 Gain on sale of investments = 300,000 Loss on discontinued operations = 1,200,000 Restructuring costs = 280,000 Trident Corporation's income from continuing operations before income taxes for 2024 is: The Wazoo Company reported an $11,200 liability in its 2023 balance sheet for subscription revenue received in advance. During 2024, $62,000 was received from customers for subscriptions and the 2024 income statement reported subscription revenue of $63,700. What is the liability amount for deferred subscription revenue that will appear in the 2024 balance sheet? If the required adjusting entry for prepaid rent that has expired for the period is omitted: a. assets will be overstated and net income overstated. b. assets will be understated and net income overstated. c. assets will be understated and net income understated. d. assets will be overstated and net income understated.

Creecher purchased $200,000 worth of Troman stock, received four quarterly dividends of $1,000 each, and sold the Troman shares for $206,000 after one year. What is Creecher's rate of return?

b. How is the acid-test (quick) ratio calculated? Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000. In addition, you determine that customers owed the company $60,000 at the end of the year, and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. How is profit margin calculated? Which of the following is not an advantage of accrual accounting? a. Spreads out the influence of one time events that affect multiple reporting periods b. Highlights cash effects of operations c. Captures long run performance d. Recognizes assets and liabilities associated with receivables and payables

Which of the following is not an advantage of accrual accounting? a. Spreads out the influence of one time events that affect multiple reporting periods b. Highlights cash effects of operations c. Captures long run performance d. Recognizes assets and liabilities associated with receivables and payables

a. On October 1, 2024, American Medical Inc. adopted a plan to discontinue its generic drug division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by March 30, 2025. On December 31, 2024, the company's year-end, the following information relative to the discontinued division was accumulated: Operating loss for 2024 = $195 million Excess of book value over fair value, less costs to sell, at year-end = 25 million In its income statement for the year ended December 31, 2024, American would report a before-tax loss on discontinued operations of: How is working capital calculated? Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000. In addition, you determine that customers owed the company $60,000 at the end of the year, and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. Accounting standards in the United States are currently set by: a. The FASB b. The AICPA c. The EITF d. The NCAA

Accounting standards in the United States are currently set by: a. The FASB b. The AICPA c. The EITF d. The NCAA

$208,000 How is the current ratio calculated? How is working capital calculated? Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000. In addition, you determine that customers owed the company $60,000 at the end of the year, and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year. A prepaid expense: a. occurs when an expense is recorded in the current period but not paid until a future period. b. occurs when a company receives cash from customers prior to providing goods and services to those customers. c. occurs when an asset is acquired in the current period but not expensed until a future period. d. All of these answer choices are incorrect.

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000. In addition, you determine that customers owed the company $60,000 at the end of the year, and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

Assets = 39,000; Equity = 39,000 Show the effect on the accounting equation. Provide services to customers on account for $39,000. Danielle Corporation received $2,000,000 from investors and issued them shares of its stock. Danielle's journal entry to record this transaction would include a: a. debit to investments b. credit to common stock c. credit to retained earnings d. credit to revenue Which of the following is not an advantage of accrual accounting? a. Spreads out the influence of one time events that affect multiple reporting periods b. Highlights cash effects of operations c. Captures long run performance d. Recognizes assets and liabilities associated with receivables and payables The closing process involves: a. Recording year-end entries. b. Transferring revenue and expense balances to retained earnings. c. Closing out the permanent account balances.

Show the effect on the accounting equation. Provide services to customers on account for $39,000.

Assets = 31,000; Liabilities = 31,000 Show the effect on the accounting equation. Provide services to customers on account for $39,000. The Trident Corporation's results for the year ended December 31, 2024, include the following material items: Sales revenue = 8,200,000 Cost of goods sold = 4,800,000 Selling and administrative expenses = 2,000,000 Gain on sale of investments = 300,000 Loss on discontinued operations = 1,200,000 Restructuring costs = 280,000 Trident Corporation's income from continuing operations before income taxes for 2024 is: Accounting standards in the United States are currently set by: a. The FASB b. The AICPA c. The EITF d. The NCAA Show the effect on the accounting equation. Purchase equipment by signing a note with the bank for $31,000.

Show the effect on the accounting equation. Purchase equipment by signing a note with the bank for $31,000.

b. How is the average days in inventory calculated? Show the effect on the accounting equation. Provide services to customers on account for $39,000. Which of the following is most likely to be reported as a long-term asset? a. Accounts receivable b. Buildings c. Prepaid rent d. Inventory Danielle Corporation received $2,000,000 from investors and issued them shares of its stock. Danielle's journal entry to record this transaction would include a: a. debit to investments b. credit to common stock c. credit to retained earnings d. credit to revenue

Danielle Corporation received $2,000,000 from investors and issued them shares of its stock. Danielle's journal entry to record this transaction would include a: a. debit to investments b. credit to common stock c. credit to retained earnings d. credit to revenue

11,200 + 62,000 - 63,700 = 9,500 The correct amount of prepaid insurance shown in a company's December 31, 2023, balance sheet was $900. On July 1, 2024, the company paid an additional insurance premium of $600. In the December 31, 2024, balance sheet, the amount of prepaid insurance was correctly shown as $500. The amount of insurance expense that should appear in the company's 2024 income statement is: How is profit margin calculated? The Wazoo Company reported an $11,200 liability in its 2023 balance sheet for subscription revenue received in advance. During 2024, $62,000 was received from customers for subscriptions and the 2024 income statement reported subscription revenue of $63,700. What is the liability amount for deferred subscription revenue that will appear in the 2024 balance sheet? How is the inventory turnover ratio calculated?

The Wazoo Company reported an $11,200 liability in its 2023 balance sheet for subscription revenue received in advance. During 2024, $62,000 was received from customers for subscriptions and the 2024 income statement reported subscription revenue of $63,700. What is the liability amount for deferred subscription revenue that will appear in the 2024 balance sheet?

c. How is the debt to equity ratio calculated? What are the 4 main components of a multi-step income statement? A prepaid expense: a. occurs when an expense is recorded in the current period but not paid until a future period. b. occurs when a company receives cash from customers prior to providing goods and services to those customers. c. occurs when an asset is acquired in the current period but not expensed until a future period. d. All of these answer choices are incorrect. Which of the following is most likely to be reported as a long-term asset? a. Accounts receivable b. Buildings c. Prepaid rent d. Inventory

A prepaid expense: a. occurs when an expense is recorded in the current period but not paid until a future period. b. occurs when a company receives cash from customers prior to providing goods and services to those customers. c. occurs when an asset is acquired in the current period but not expensed until a future period. d. All of these answer choices are incorrect.

CM Income statement Sales -Variable Cost (VC) Contribution Margin (CM) -Fixed Cost (FC) Net Operating Income Additional Units to Break-even VARIABLE COGS Overall Master Formula (use for anything) Sales

Overall Master Formula (use for anything)

ROA Financial Leverage Profit Margin x Asset Turnover = ROA margin =

Profit Margin x Asset Turnover =

Business transaction Defintion Bank Account Increases- Bank-UP Interest Earned-DOWN a financial event that causes a change in the financial position assets, liabilities or owner's equity must change as a result of the activity Can do a lot of things, such as pay back A/P, or purchase goods, or be used for personal withdrawal. Bank-DOWN Assets-UP or A/P-DOWN or OE-DOWN It increases on the left on decreases on the right

a financial event that causes a change in the financial position assets, liabilities or owner's equity must change as a result of the activity

Source document Definition The Objectivity Principle - All financial statements of a business must be made without any external feelings, and must be made from SOLID EVIDANCE. (For example, lets say if you believe that you will get a massive payment from a lawsuit you would likely win, and record that massive payment on a financial statement, that VIOLATES IT WOAH. Even if you "think" you'll win, there's no hard evidence) When a customer buys something on account. A/R-UP Revenue/Capital-UP Left, Right a business paper that is the original record of a transaction and provides the information needed when accounting for the transaction eg. phone bills, cheque copies, store receipts, credit card slips accounting entries are made from these kept on file as proof of the transaction for reference

a business paper that is the original record of a transaction and provides the information needed when accounting for the transaction eg. phone bills, cheque copies, store receipts, credit card slips accounting entries are made from these kept on file as proof of the transaction for reference