What are credit sales? Definition of Credit Sales As opposed to cash sales, credit sales (or sales on credit) allow the customer to pay the seller at a later date. Perhaps the seller allows its credit worthy customers to...
What are credit sales? Definition of Credit Sales As opposed to cash sales, credit sales (or sales on credit) allow the customer to pay the seller at a later date. Perhaps the seller allows its credit worthy customers to...
regression analysis involving 15 monthly observations that 64% of the change in the total cost of electricity (the dependent variable) was associated with the change in the monthly production machine hours (the...
of the land. Example of Sale of Land Assume that the retailer had purchased the parcel of land 15 years earlier for $200,000 in order to add another retail store. The retailer now decides to sell the parcel for...
each month. Therefore, each month one-twelfth of the inventory records would be adjusted so that they agree to the physical counts. Another possibility would be to physically count the most important 15% of the...
of the 20 six-month time intervals. Another example of an ordinary annuity is a mortgage loan having a fixed interest rate and a series of equal monthly payments. For instance, a 15-year mortgage loan will result in an...
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
of ending inventory = cost of goods sold. Assume that the cost of goods available for the year 2023 was $240,000. If the company shows too little of that cost as its ending inventory (say $15,000 instead of $25,000), it...
Our Explanation of Activity Based Costing illustrates how manufacturing overhead costs for a product will differ when costs are allocated using only the number of machine hours, as opposed to being allocated using the...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
machine hour (due to high depreciation, electricity, maintenance, etc.) Dept #2 rate: $20 per machine hour Dept #3 rate: $15 per machine hour Now, let’s assume that the manufacturer’s Product A requires 7 hours in...
Our Explanation of Nonprofit Accounting includes a chart that contrasts the financial statements of a nonprofit (or not-for-profit) organization with those of a for-profit business corporation. There are many examples to...
. $500 Wrong. Try another answer. $550 Right! [40 hours X $10] plus [10 hours X $15] = $550 OR [50 hours X $10] plus [10 hours X $5] = $550 Use the following information for Questions 15 – 17: An employee worked the...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
costs are reported on the balance sheet as __________. 15. An adjusting entry that involves the accrual of an expense will also involve this type of account. Select... Asset Liability Revenue 16. An adjusting entry that...
is VERY small in relation to the cash outlay of $450,000. (It is possible that the project is earning a 15.95% return.) So while the project just missed the 16% cutoff and therefore has a negative net present value, it...
. Try another answer. 8. A company purchased items for inventory during 2023 at continuously higher costs. Its last two purchases of 2023 were 20 units on December 20 at a cost of $14 per unit and 30 units on December 30...
A reference used to indicate the combination of the Social Security tax and the Medicare tax. For the year 2024, the employee’s portion of the FICA tax is 7.65% (the Social Security tax of 6.2% plus the Medicare...
Unscramble 4. If employees are paid $15 per hour and the standard cost is $14 per hour, there will be a labor _______ variance. RATE ERTA Unscramble RATE ERAT Unscramble 5. The labor quantity variance is often referred...
that it leases from the owner (lessor). The lease states that all improvements to the building will belong to the owner of the building. If the walls and offices cost $90,000 and are expected to be useful for 15 years,...
divided by 26 paydays) during each biweekly pay period. The employee’s pay records will indicate a gross salary of $2,000 each biweekly payday. Example of Semimonthly Payroll Now let’s assume that another company...
Perhaps the most common example of the term amortization is the amortization schedule associated with a mortgage loan. For a 15-year mortgage loan with a fixed interest rate and monthly payments, the amortization...
of $15,000 a month. It has been determined that $10,000 of the rent pertains to the manufacturing facilities. The remaining $5,000 is for rent for housing the nonmanufacturing functions such as selling, general and...
and are expected to grow exponentially from Year 4 through Year 15 While Project #187’s payback period is faster, Project #188 is significantly more profitable. Hence, the limitation of using only the payback period...
that can easily be audited. In contrast, the market value is subjective: one person thinks the land is worth $1 million while another thinks it’s worth $1.5 million. Further support for the cost principle is the...
asset) and credit Interest Revenue (or Income). Example of Accrued Interest Let’s assume that on December 16, a company borrows $20,000 from its bank at an annual interest rate of 6%. The first interest payment is due...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
because the adjusting entry was omitted? Select... Asset Liability Stockholders' equity 15. A corporation issued its balance sheet without an accrual adjusting entry for the interest it had earned on an investment...
into Accounts Payable, the information on the invoice should be compared to the pertinent __________ order. 15. A vendor’s invoice includes terms of 2/10, net 30. If the invoice amount is $2,000 before a vendor...
. The company's accounting year ends on December 31. 13. The December 31 adjusting entry will include a debit to Interest __________. 14. The December 31 adjusting entry will include a credit to Interest__________....
if the bonds are outstanding on any of the other 363 days of the year. To illustrate, assume that on June 1 a corporation issued $3,000,000 of bonds with a stated interest rate of 6% (and the market interest rate is...
Our Explanation of Improving Profits will assist you in focusing on the costs and revenues that are relevant (and ignoring those which are not relevant) for improving profits and eliminating losses. Examples of the...
in the note. Company X computed the present value of the note to be $17,000 as of December 31, 2023. 14. The amount of service revenue that Company X should report in 2023 is $__________ $17,000. 15. The amount of...
expansion by paying part in cash and signing a note payable for the remaining amount? Select... Assets and liabilities will increase Assets and stockholders' equity will increase The total amount of assets will not...
Payroll Accounting(Quick Test #3 with Coaching) Download PDF This Quick Test with Coaching includes a “View Coaching” button to the right of each answer box. If you choose to click the button, an explanation for the...
in the general ledger is supported by the details in a __________ ledger. 15. Sales commission expense is part of the cost of goods sold. Select... True False 16. The__________ accounts are usually listed first in the...
account and its bank statement is documented in the __________ reconciliation of the bank statement. 15. Accrued expenses are likely to pertain to transactions that have __________ been paid. Already Wrong. Not Yet...
, and interest. Example of an Accrual as a Current Asset Assume that during December a company has earned interest of $5,000 on its investment in U.S. Treasury bills. However, all of the interest will be received by the...
in a general journal entry. Select... debited credited 13. Recording an entry in the general journal is referred to as posting. Select... True False 14. A __________ is known as the book of original entry. 15. Entries...
Unscramble 14. Under _________-entry bookkeeping a transaction affects a minimum of two accounts. DOUBLE DLOUEB Unscramble DOUBLE EULDOB Unscramble 15. Internal controls include the _______________ of duties. SEPARATION...
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