Canceling the balance of a customer account because the customer does not pay is called

A note provides a business with legal evidence of a debt in the event it becomes necessary to go to court to collect.

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by a generally accepted accounting principles.

The original amount of a note, sometimes referred to as the face amount is called the

The interest earned on money loaned is called

A business usually knows at the end of the fiscal year which customer accounts will become uncollectible

All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.

The adjustment unique to a merchandise business adjusts

Depreciation expense is recorded on all plant assets

The adjustment for unpaid federal income tax includes a(n)

The annual straight line depreciation of equipment costing $7000 with a salvage value of $100, and useful life of 5 years would be $1400.

The Internal Revenue Service sets the amounts and rates of the tax brackets used to calculate Federal Income Tax Expense.

The total amount of depreciation expense that has ben recorded since the purchase of a plant asset is

A business can use any 12 month period for reporting its financial performance.

The operating revenue remaining after cost of merchandise sold has been deducted is

All the information to prepare a statement of stockholders' equity is obtained from the income statement and the adjusted trial balance.

Data needed to prepare the liabilities section of a balance sheet are obtained from the debit column of an adjusted trial balance

Dividends Payable is a long term liability

In the accounting cycle, closing entries are journalized and posted after the

When more detailed information about an item on a financial statement is needed, a supporting schedule may be prepared.

Preparing financial statements that provide information about a business financial condition, changes in its financial condition, and the progress of operations is an application of the accounting concept

Some management decisions can best be made after the amount of assets, liabilities, and stockholders' equity in the business is determined.

Ways to increase gross profit is to

When a businesses expenses are less than the gross profit, the difference is known as a net loss

Vertical analysis ratios are an example of a

To rate the ability of a business to pay its current and long-term liabilities, investors use

A company has set its gross margin target range at 40 to 42%. An increase in the ratio from 38 to 39% is a positive trend.

The ratio that measures the relationship between cash and current assets is the quick ratio.

A business with operating expenses that exceed its target range should always begin by reducing the number of employees, the largest operating expense for most businesses.

Income stocks typically have a higher dividend yield than growth stocks

Income stocks typically have a higher dividend yield than growth stocks.

Quick assets include cash and merchandise inventory.

The ratio that gives the best indication of how effectively a business is earning a profit from its normal business operations is the

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