ACCT 200 Exam 1

How prepared do you feel for the exam?

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• Awesome

What is the equation for Gross Margin?

• = Revenues - Expenses

• = Revenues - Cost of Goods Sold

• = Cost of Goods Sold + Revenues

• = Cost of Goods Sold + Expenses

What does 2/10, n/30 mean?

• 2% discount if paid in 10 days

• 2% discount if paid in 30 days

• No discount

What organization establishes accounting standards in the US?

• IFRS

• GAAP

• IASB

• FASB

What are the accounting standards in the US called?

• FASB

• IASB

• GAAP

• IFRS

What account increases with a credit?

• Unearned revenue (liability)

• Cash (asset)

• Dividend payment (dividend)

• Electricity expense (expense)

What's on an income statement?

• Cash flows

• Revenues and expenses

• Assets and liabilities

Does GAAP use accrual accounting or cash accounting?

• Accrual

• Cash

What's an example of an accrual?

• Unearned revenue

• Accounts receivable

• Prepaid items