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Hosted by Ms. Appel.

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Presentation on theme: "Hosted by Ms. Appel."— Presentation transcript:

1 Hosted by Ms. Appel

2 True/False 1 True/False 2 True/False 3 True/False 4 100 100 100 100 200 200 200 200 300 300 300 300 Final 400 400 400 400 500 500 500 500

3 Reporting financial information the same way from one fiscal
What is False? Reporting financial information the same way from one fiscal period to the next is an application of the accounting concept Adequate Disclosure. Row 1, Col 1

4 If a company has determined that the acceptable component
What is False? If a company has determined that the acceptable component percentage for cost of merchandise sold is not more and 51.1%, the current year’s actual component percentage of 48.9% is unacceptable. Row 1, Col 2

5 A balance sheet reports the financial condition of a business
What is True? A balance sheet reports the financial condition of a business on a specific date. Row 1, Col 3

6 A separate financial statement may be prepared to show the
What is True A separate financial statement may be prepared to show the distribution of net income or loss to partners. Row 1, Col 4

7 Most businesses correct an unacceptable component percentage
What is False? Most businesses correct an unacceptable component percentage for gross profit by simply increasing the markup on merchandise purchased for sale because an increased selling price will always increase profit. Row 2, Col 1

8 Increasing sales revenue while keeping cost of merchandise sold
What is True? Increasing sales revenue while keeping cost of merchandise sold the same will increase gross profit on sales. Row 2, Col 2

9 For a merchandising business, every sales dollar reported on
What is False? Daily Double For a merchandising business, every sales dollar reported on the income statement includes only three components: gross profit on sales, total expenses, and net income. Row 2, Col 3

10 Total expenses on an income statement are deducted from
What is True Total expenses on an income statement are deducted from the gross profit on sales to find net income. Row 2, Col 4

11 An income statement for a merchandising
What is True? An income statement for a merchandising business has tree main sections: revenue, cost of merchandise sold, and expense Row 3, Col 1

12 An owners’ equity statement summarizes the changes in
What is True? An owners’ equity statement summarizes the changes in owners’ equity during a fiscal period. Row 3, Col 2

13 When more detailed information about an item on a financial
What is True? When more detailed information about an item on a financial statement is needed, a supporting schedule may be prepared. Row 3, Col 3

14 business is affected when a business earns an income or
What is True The owners’ equity of a business is affected when a business earns an income or incurs a loss Daily Double Row 3, Col 4

15 is used to report a business’s
What is True? An income statement is used to report a business’s financial progress. Row 4, Col 1

16 A distribution of net income statement summarizes how
What is False? A distribution of net income statement summarizes how owners’ equity has changed during a fiscal period. Row 4, Col 2

17 Regardless of how earnings are shared, the steps in
What is True Regardless of how earnings are shared, the steps in preparing a distribution of net income statement are the same. Row 4, Col 3

18 Gross profit must be less than total expenses in order to provide
What is False Gross profit must be less than total expenses in order to provide for a desirable net income. Row 4, Col 4

19 component percentages are calculated by dividing the
What is False? On an income statement, component percentages are calculated by dividing the amount of each component by the amount of expenses. Row 5, Col 1

20 on the last line of a distribution
What is True? Net income is shown on the last line of a distribution of net income statement. Row 5, Col 2

21 Revenue less cost of merchandise
What is False Revenue less cost of merchandise sold equals net income. Row 5, Col 3

22 Beginning merchandise inventory less purchases made during
What is False Beginning merchandise inventory less purchases made during the fiscal period plus ending inventory equals cost of merchandise sold. Row 5, Col 4

23 List the sections under each owner on an Owners’ Equity Statement
Final Jeopardy List the sections under each owner on an Owners’ Equity Statement Capital at beginning of the fiscal period Share of Net Income/Loss Less Withdrawals Net Increase/Decrease in Capital Capital at the end of the fiscal period.


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