Match the following terms with the appropriate definition.
A company sells a single product and had the following beginning inventory, purchases,
and sales during March.
Calculate the cost of the ending inventory under each assumption below:
Explain why the allowance method satisfies the matching principle.
At the beginning of this year, Tong Company had $160,000 in liabilities. During this
year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities
decreased $20,000 during this year. Calculate the beginning and ending values of
equity.
A ratio used to assess a company’s ability to cover its current debts with quick assets is
called the _________________.
If a 60-day note receivable is dated September 22, what is the due date of the note?
The accounts receivable turnover ratio is calculated by dividing _________________
by _____________________.
Complete the following by filling in the blanks:
(1) The Prepaid Insurance account had a $455 debit balance at the beginning of a year;
$650 of insurance premiums were paid during the year and debited to Prepaid
Insurance; and the year-end balance sheet showed $420 of Prepaid Insurance.
Consequently, the income statement for the year must have shown $__________ of
Insurance Expense.
(2) The Office Supplies account began a year with a $235 debit balance; the income
statement for the year showed $475 of Office Supplies Expense; and the year-end
balance sheet showed Office Supplies at $225. Consequently, if all supplies were
accounted for, $________ of office supplies must have been purchased during the year.
The _____________________ account is used to record the effects of cash overages
and shortages from errors in making change.