Category: Uncategorized

A component of operating efficiency and profitability, calculated by expressing net income as a percent of net sales, is the:

To include the personal assets and transactions of a business’s stockholders in the records and reports of the business would be in conflict with the:

An adjusting entry could be made for each of the following except:

A company’s chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

Gordon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gordon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Gordon makes to record the write off of the account on May 3 is:

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

The revenue recognition principle is the basis for making adjusting entries that pertain to unearned and accrued revenues.

The income statement reports on operating activities at a point in time.

The cash basis of accounting recognizes revenues when cash payments from customers are received.

To include the personal assets and transactions of a business’s stockholders in the records and reports of the business would be in conflict with the: