Accounting Test #2

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Author:
bigtitties420
ID:
287915
Filename:
Accounting Test #2
Updated:
2014-11-02 20:44:56
Tags:
nikash nanvaty
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Test with cards
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  1. Debt-to-asset ratio
    total liabilities/total assets 

    higher ratio=greater risk
  2. Asset turnover ratio
    total revenue/average total assets

    higher ratio=greater effieciency
  3. Net Profit Margin ratio
    net income/total revenue

    higher ratio=better performance
  4. Journal Entry for cash shortage
    • dr cash (actual)
    • dr cash shortage (difference)
    •      cr sales revenue (original)
  5. Prepare a bank reconcilitaion
    • 1) deposits in transit (add to bank statement)
    • 2) outstanding checks (minus from bank statement)
    • 3)other transactions
  6. Journal Entry for interest received
    • dr cash
    •     cr interest revenue
  7. journal entry for NSF
    • dr accounts receivable
    •     cr cash
  8. Ending inventory
    • Beginning Inventory
    • + Purchases
    • - Goods Sold
  9. Sale of merchandise in perpetual
    • original --> dr cash
    •                     cr sales revenue

    • real --> dr cost of goods sold
    •                cr inventory
  10. Gross profit
    difference between selling price and cost
  11. Returns and allowances
    • dr sales returns and allowances
    •    cr cash

    • dr inventory
    •    cr cost of goods sold
  12. Gross profit %
    • gross profit/net sales x 100

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