Accounting Flashcards
1
Q
Discount
A
Credit discount, debit TP
2
Q
Credit purchases
A
Credit TP, debit purchases
3
Q
Sales return, customer returns goods
A
Debit sales, credit TR
4
Q
Purchase returns to supplier
A
Credit purchases, debit TP
5
Q
Sales made on credit
A
Credit sales, debit TR
6
Q
Income statement
A
1) sales revenue - cost of goods sold = gross profit
2) Gross profit - other expenses-operating profit
3) operating profit - loan interest = profit before tax
4) profit before tax - tax = profit after tax
5) profit after tax - dividends = retained profit
7
Q
Straight line depreciation
A
Cost-residual value/life of asset
8
Q
Reducing balance
A
NBV of previous year times RBR
9
Q
Sum of digits
A
Cost - residual value/ sum of digits x life at start of year
10
Q
Units of service
A
(Cost - scrap) x use in year/total use
