Acc 201 Chapter 3 final exam

Acc 201 Chapter 3 final exam - incurred regardless of the...

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Chapter 3 : Income Statement Know what’s in it Revenues: Gross Sales, Sales Rents/Allowances (contra), Sales Discounts (contra), Service Revenue, Rent Rev. Expenses: Wages/Salary/Depreciation/Utilities/Rent/Supplies/Bad Debt/Amortization Other Items: Dividend Rev. (Investment), Interest Rev., Loss/Gain Sale Equipment, Interest Exp., Gain/Loss Investment. Income Tax Exp Extraordinary Items: Income, Expenses Accrual Accounting, Revenue principle, matching principle Accrual Accounting: Records revenues when earned and expenses when
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Unformatted text preview: incurred, regardless of the timing of cash receipts or payments. Revenue principle: Revenues are recognized when goods or services are delivered, there is evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured. Matching principle: Requires that expenses be recorded when incurred in earning revenue Total Asset Turnover Ratio Total Asset Turnover Ratio = Sales Revenues / Average Total Assets...
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.

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