TOPIC 2, SCI Flashcards
Is a statement that reports the results of operations of the business for one accounting period
Statement of Comprehensive Income (SCI)
Which is correct?
A.
ABC COMPANY
STATEMENT OF COMPREHENSIVE INCOME
AS OF DECEMBER 31, 2011
B.
ABC COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2011
B
*2 kinds of income
Are income generated from the primary operations of the business
Revenue
*2 kinds of income
Are income derived from other activities of the business
Gains
*2 kinds of expenses
Are related to primary operations of the business
Expenses
*2 kinds of expenses
Examples of these are: interest expense from notes payable
Losses and other expenses
When goods are returned, it is not deducted from sales. Rather, normal accounting practice is to report it under the account name ____ _____ ___ _________
-contra sales account
Sales Return and Allowances
Net sales = ? - ? - ?
Gross sales - Sales Return and Allowances - Sales Discount
What is the meaning of 2/10,n/30
Two-Tenth, net 30
Thorough Explanation: A buyer will receive a 2% discount on the net amount if they pay the invoice in full within the first ten days of the invoice date. Otherwise, the full invoice amount is due in 30 days without a discount.
What is the account name for revenue
of a service company?
Services Rendered/ Services Revenue
What is the account name for the
revenue of a trading company?
Sales
Identify the components of net sales.
Gross Sales - Sales return and allowances - sales discount
Net Purchases = _ + _ - _ - _
Net Purchases = Purchases + Freight in - Purchase Returns - Purchase Discount
