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Flashcards in final exam Deck (25):
1

After each purchase the new weighted average cost per unit is calculated in

1. weighted inventory system

2

On the newest purchased Cost of goods sold are based under

LIFO inventory system

3

reduction in amount received from costumer for earlier payment

sales discounts

4

Title passes to a purchaser under terms FOB destination when

1. the purchaser recives the goods

5

Freight in is recorded in a perpetual inventory system as

1. merchandise inventory

6

Perpetual inventory system keeps running record of

inventory and cost of good sold

7

Account that appears on the post closing trial balance

permanent accounts

8

Account revenue and expenses are close to

income summary statement

9

are Permanent accounts closed at the end of the period.

no

10

The closing process helps measuring

1. each period net income separately from all other periods

11

allocates equal amount of depreciation each year

Straight line method

12

The normal balance of a contra account is

1. the opposite of the normal balance of the related account

13

Revenue is recorded under the accrual basis of accounting when

its earned

14

1. Total debit must always equal total credits

yes

15

Trial balance

a list of all ledgers accounts with their balances at a point in time

16

1. appears on either credit or debit where we record and increase in the account balance

Normal balance account

17

Financial statement

1. business documents that are used to communicate information needed to make business decisions

18

Assets

economic resource that is expect to be useful in the future

19

1. Creditor-

person or buss. Who business owes money

20

Accounting

1. the information system that measures bussines activities, process the info. Into reports and communicates results to decision makers.

21

what does market value means for inventories

it means the current replacement cost of the inventories

22

what does the lower of cost or market rule demonstrate

accounting conservatism in acción

23

5 components of internal control

CRIME

24

PETTY CASH

keep record of small transactions

25

journal entry used to open a new petty cash fund

debit petty cash credit cash