Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Accounting > Chapter 5 and 6 > Flashcards

Chapter 5 and 6 Flashcards

(60 cards)

Start Studying
1
Q

Net Revenue formula

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Credit Sales

A

Transfer of product and services to a customer today while bearing the risk of collecting payment from that customer in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Trade Discounts

A

a reduction in the listed price of a product or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Sales return

A

when a customer returns a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sales Allowance

A

Any partial refund without the customer returning the product or offering an allowance such as store credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Contra Revenue Account

A

opposite or contra to that of its related revenue account (sales allowance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sales discount

A

reduction in the amount to be paid by a credit customer if payment is made within a specified period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Physicians’ Hospital has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $45,000; Allowance for Uncollectible Accounts = $1,000 (credit). On December 31, 2018, Physicians’ estimates uncollectible accounts to be 20% of accounts receivable.
Record the adjustment for uncollectible accounts on December 31, 2018.

A

T- Account

Allowance Uncollectiable Assets

Credit

$1000 intial +

$8000 Adjustment =

$9000 estimated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Physicians’ Hospital has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $45,000; Allowance for Uncollectible Accounts = $1,000 (credit). On December 31, 2018, Physicians’ estimates uncollectible accounts to be 20% of accounts receivable

Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Physicians’ Hospital has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $45,000; Allowance for Uncollectible Accounts = $1,000 (credit). On December 31, 2018, Physicians’ estimates uncollectible accounts to be 20% of accounts receivable

Calculate the net realizable value of accounts receivable.

A

Total Account Receviable - Uncollectiable Allowance Account = Net realizable Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Southwest Pediatrics has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $113,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2018, Southwest estimates uncollectible accounts to be 15% of accounts receivable.
Record the adjustment for uncollectible accounts on December 31, 2018

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Southwest Pediatrics has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $113,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2018, Southwest estimates uncollectible accounts to be 15% of accounts receivable.

Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Southwest Pediatrics has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $113,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2018, Southwest estimates uncollectible accounts to be 15% of accounts receivable.

Calculate Net Realizable Value

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Estimate the amount of uncollectible receivables.

A

Take percentage of all the receivables and add them up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Record the adjustment for uncollectible accounts on December 31, 2018

A

Adjustment of journal, 11,160 - 1400(credit) = adjustment of bad debts and uncollectible accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When debit of a bad debt expense how should the formulation go?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Formulation of Uncollectible Credit

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the Formulation for Receivable Turnover Ratio?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Determining Average Account Receivables?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Determining Average Collection Period

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q
A

When debit of a bad debt expense how should the formulation go?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q
A

Formulation of Uncollectible Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q
A

What is the Formulation for Receivable Turnover Ratio?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q
A

Determining Average Account Receivables?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Determining Average Collection Period
26
Cost of Goods Sold measurement?
The cost inventory of the firm that was sold
27
What is perptual inventory system
recording inventory purchase and sales on a perpetual (continual) basis
28
what is periodic inventory system
calculates the balance of inventory once per period at the end based on physical count of inventory
29
what is FOB shipping?
title transfer when item shipped from seller to to buyer
30
What is FOB destination ?
Title transfer when buyer receives the items
31
Defintion of Freight out?
charges for outgoing inventory reported in the income statement either as part of cost of good sold or as an operating expense, usually among selling expense
32
What is freight in?
Freight is part of the inventory cost later when sold freight becomes part of COGS reported in the income statement
33
Inventory turnover ratio
COGS / Average inventory (B - E)
34
Good Avaliable for Sale
Beginning Inventory + Cost of inventory purchased
35
COGS?
(Beginning Inventory + Cost of goods purchased (Goods avaliable for sale) ) - ending inventory
36
What is the gross profit ratio?
(Gross Profit) / (Net Sales)
37
Gross Profit Formula?
Net Sales - COGS
38
Operating Expenses?
Recorded on an income statement it's the expense for selling, general and admin expenses.
39
Return on asset
Net Income / Average Total Asset N.I / ATA
40
Asset Turnover ratio
Net Sales / Average Total Asset N.S. / A.T.A
41
Profit Margin Ratio
Net Income / Net Sales N.I. / N.S.
42
Capitalize
Recording an expenditure as an asset
43
Amortization
Allocating the cost of intangible assets to expense
44
# Reverse recording inventory purchase and sales on a perpetual (continual) basis
What is perptual inventory system
45
# Reverse calculates the balance of inventory once per period at the end based on physical count of inventory
what is periodic inventory system
46
# Reverse title transfer when item shipped from seller to to buyer
what is FOB shipping?
47
# Reverse Title transfer when buyer receives the items
What is FOB destination ?
48
# Reverse charges for outgoing inventory reported in the income statement either as part of cost of good sold or as an operating expense, usually among selling expense
Defintion of Freight out?
49
# Reverse Freight is part of the inventory cost later when sold freight becomes part of COGS reported in the income statement
What is freight in?
50
# Reverse COGS / Average inventory (B - E)
Inventory turnover ratio
51
# Reverse Beginning Inventory + Cost of inventory purchased
Good Avaliable for Sale
52
# Reverse (Beginning Inventory + Cost of goods purchased (Goods avaliable for sale) ) - ending inventory
COGS?
53
# Reverse (Gross Profit) / (Net Sales)
What is the gross profit ratio?
54
# Reverse Net Sales - COGS
Gross Profit Formula?
55
# Reverse Recorded on an income statement it's the expense for selling, general and admin expenses.
Operating Expenses?
56
# Reverse Net Income / Average Total Asset N.I / ATA
Return on asset
57
# Reverse Net Sales / Average Total Asset N.S. / A.T.A
Asset Turnover ratio
58
# Reverse Net Income / Net Sales N.I. / N.S.
Profit Margin Ratio
59
# Reverse Recording an expenditure as an asset
Capitalize
60
# Reverse Allocating the cost of intangible assets to expense
Amortization

Accounting (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions