Review

A __________ amount will appear on the left side of a T-account.

• Credit

• Debit

An Asset is:

• Refers to items that are owned

• Refers to amounts that are owed to others

• Refers to amounts earned

Expenses are those items that are:

• Direct costs for producing goods

• Costs associated with operating a business

• All the company outflows

To journalize business transactions, refers .

• Recording them in the general journal

• Recording them in the general ledger

• Organizing the company paperwork

To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?

• Retained Earnings

• Cash

• Accounts Receivable

• Inventory

Accounts Payable is classified as a/an ___________ in the _____________.

• Current asset; Balance Sheet

• Current liability; Balance Sheet

• Expense; Income Statement

• Revenue; Income Statement

Which of the following documents authorizes the purchase transaction?

• Credit memo from supplier

• Invoice or bill from supplier

• Purchase order

• Purchase requisition

What is meant by accounts receivable?

• Money owed to a company by its debtors

• Money owed by a company to its creditors

• Money owed to a company by its employees

• Money owed by a company to its vendors

1. What is the missing term in the break even formula below?

Break even revenue = Operating expenses / ?

• Gross margin

• Gross margin %

• Variable expenses

. What is the missing term in the break even formula below?

Break even units = Operating expenses / (Selling price – ?)

• Cost per unit

• Gross margin

• Revenue