FINAL REVIEW Flashcards
What goes on an Income Statement
Revenues and Expense
What goes on the statement of retained earnings?
Net Income, Dividends, Beginning Retained Earnings
What goes on the balance sheet?
Assets, Liabilities, Stockholders Equity
What Goes on the Statement of Cash Flows?
Cash Inflows and Outflows
How do you calculate the Current Ratio?
Current Assets/Current Liabilities
How do you calculate net profit margin?
Net Income/Revenues
What are the three sides to the Fraud Triangle?
Incentive, Opportunity, Rationalization
What are the counteracts to the fraud triangle?
Counteract incentives, Reduce Opportunities, Encourage Honesty
What are some reconciling differences that your bank may not know about?
Errors made by the bank, Time Lags in deposits/checks you made recently
What are some reconciling differences that you may not know about?
Interest the bank has put into your account, Electronic funds transfers (EFTs), Service charges taken out of your account, Customer checks you deposited for which the customer had non-sufficient funds (NSF), Errors you made
How do you calculate Cost of Goods Sold using a Periodic Inventory System?
Beginning Inventory + Purchases - Ending Inventory
How do you calculate ending inventory?
Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory
FOB Shipping Point
The Seller is responsible until the delivery leaves the warehouse
FOB Destination
The Seller is responsible until the delivery arrives to the Buyer.
How do you interpret these credit terms: 2/30, n/60
2 percent discount is offered if paid in the first 30 days, the net purchase is due in 60 days.
