Accounting quiz

Accounting Quiz
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Unformatted text preview: Accounting Quiz Gross Profit Rate=gross profit/net sales Profit Margin Ration=net income/net sales Revenue Recognition Principle- recognize revenue in the period it was earned Expense Recognition Principle- Expenses (efforts) should be matched with revenues (results). FOB Shipping Point- Ownership passes to buyer once goods are on the truck FOB Destination- Ownership passes to buyer once buyer has goods Discount on a good: Accounts payable Cash Inventory 100 70 30 Sales Returns and Allowances: Sales Returns and Allowances Accounts Receivable 300 300 Inventory Cost of Goods Sold Sales Discount: Cash Sales Discount Accounts Receivable 140 140 100 50 150 ...
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