M2

Question 1

Contains the results of the company’s operations for a specific period
of time which is called net income if it is a net positive result while a net loss if it
is a net negative result.

Answer 1

SCI - Statement of Comprehensive Income

Question 2

net income if it is a

Answer 2

net positive result

Question 3

net loss if it is a

Answer 3

net negative result

Question 4

sci can be proposed for month/ a quarter/ year

Answer 4

true

Question 5

Also known as nominal accounts are the accounts
found under the SCI.

Answer 5

temporary accounts

Question 6

They are called such because at the end of the accounting
period, balances under these accounts are transferred to the capital account,
thus having only temporary amounts and resulting to zero beginning balances at
the beginning of the following year.

Answer 6

temporary accounts

Question 7

what are the 2 sci pro-forma

Answer 7

single-step
multi-step

Question 8

what pro-forma when all revenues and expenses are listed down in one section

Answer 8

single-step

Question 9

what pro-forma is when net income is computed as

TOTAL REVENUES - TOTAL EXPENSES = NET INCOME

Answer 9

Single-step

Question 10

what pro-forma is most commonly used by service company

Answer 10

single-step

Question 10

a pro-forma which has several steps and commonly used by merchandising company

Answer 10

multi-step

Question 11

what do you call the main cost associated with the service of service company

Answer 11

cost of labor

Question 12

what pro-forma seperate all revenues and expenses

Answer 12

single-step format

Question 13

what is the form of single-step

Answer 13

service revenue
LESS: Expenses
—–
—–
Total Expense
Net Income

Question 14

where does cost of merchandise presented

Answer 14

under cost of good sold

Question 15

what do you call the main cost associated with the activity of merchandise company

Answer 15

cost of the merchandise

Question 16

what pro forma present total sales and cot of good sold on the first part then net to the company’s gross profit before presenting other expenses

Answer 16

multi-step format

Question 17

contrary to the normal balance of sales or revenue account

Answer 17

contra revenue

Question 18

customer return their product for reasons such as defects/change of preference

Answer 18

sales return

Question 19

awarded to customers who pay earlier or before the deadline

Answer 19

sales discounts

Question 20

different form of trade discounts when customers buy in bulk

Answer 20

sales discounts

Question 21

aka cash discount

Answer 21

sales discounts

Question 22

statement of comprehensive income is aka?

Answer 22

income statement

Question 23

the actual cost of merchandise that able to sell during the yr

Answer 23

cost of goods sold

Question 24

amount of inventory at the beginning of accounting period

Answer 24

beginning inventory

Question 25

amount of goods bought during the current accounting period

Answer 25

purchases

Question 26

account credited being contrary to the normal balance of purchase account

Answer 26

contra purchases

Question 27

record early payments to the supplier

Answer 27

purchase discount

Question 28

sales given by a supplier

Answer 28

purchase discount

Question 29

merchandise returned by the company to their suppliers

Answer 29

purchase returns

Question 30

how buyers sees a sales return recorded by their supplier

Answer 30

purchase return

Question 31

record transportation costs of merchandise purchase by the company

Answer 31

freight in

Question 32

recorded when goods are transported into the company

Answer 32

freight in

Question 33

amount if inventory is presented in the sfp

Answer 33

ending inventory

Question 34

total cost of inventory unsold at the end of accounting cycle

Answer 34

ending inventory

Question 35

not directly related to the merchandising function but necessary for business to operate

Answer 35

general administrative expeneses

Question 36

directly related to the purpose of merchandising sales and delivery

Answer 36

selling expensesw

Question 37

what accounts are not included in selling expenses

Answer 37

cost of good sold contra revenue account

Question 38

are operating revenues earned by a company for selling its products or rendering its services.

Answer 38

sales

Question 39

- these are the accounts that deductible to your sales account. Example, sales return and sales discount

Answer 39

contra sales account

Question 40

interchangeable with gross margin or gross profit. The revenue from all sources minus the firm’s cost of goods sold or cost of sale.

Answer 40

gross income

Question 41

This amount includes the cost of the materials and labor directly used to create the good.

Answer 41

cost of good sold/cost of sales

Question 42

A temporary account used in the periodic inventory system to record the purchases of merchandise for resale.

Answer 42

purchases

Question 43

the over-all expenses of the company whether directly (selling expense) or indirectly (general administrative expense) involve in company’s operation.

Answer 43

operating expense