1) Profit Margin= Net Income/Net Sales
Tootsie Roll= 495,592/499,331
2) Gross Profit= Net Sales-Cost of G
A receivable that is evidenced by a formal instrument and that normally requires the
payment of interest is:
an account receivable.
a trade receivable.
a note receivable.
a classified receiv
A business owned by one person is a sole proprietorship.
A business owned by two or more persons associated as partners is a
A business organized as a separate legal entity owned by stockholders is a
Accounting is the informatio
profits(loss) from running
business during a certain
2 STATEMENT OF
Four Financial Statements and Debit/Credit Rules
3 BALANCE SHEET:
(I do not own a textbook so I will describe where I found the answers on Wiley Plus)
(SO 1)Which of the following is not an element of the fraud triangle?
c) Segregation of duties.
(Illustration 7-1 under the Fraud and Internal Control tab shows whats
NE (+ & -)
b. Received cash for providing a
c. Expenses paid in cash
a. Purchased supplies on
Current Liabilities Accounts payable
Current Assets Accounts receivable
Property, plant, and equipment Buildings
Property, plant, and equipment Accumulated depreciation
a. Shared control, tax advantages, increased skills and resources.
b. Simple to set up and maintains control with founder.
c. Easier to transfer
Quiz 1 Corrections
1. A business organized as a separate legal entity is a
C. government unit
First answer: B. proprietor
Correct answer: A. corporation
A corporation is owned a
-Periodicity assumption-monthly, quarterly, fiscal year
-Revenue Recognition principle- companies have to recognize revenue in the accounting
period in which it is earned, it is earned at the time the service is provided
-Expense Recognition pri
Chapter 9 Self Test
Corrieten Company purchased equipment and incurred these costs:
Insurance during transit
Installation and testing
What amount s
In periods of inflation which method shows your highest net income?
Revenue recognition policy- must be recorded when the service is performed and revenue is
3 parts of a cash flow- OIF operating Investing and financing
GAAP general accepted