Ch 13 Fill in Blanks

the difference between net sales and the cost of goods sold is called the ___ on sales

gross profit

a gross profit percentage of 45 percent means that for every 1$ of net sales, gross profit amounts to

$0.45

an adjusting entry was made for accrued salaries of $600 at the end of 2010 The adjusting entry was then reversed. To record the first payroll of 2011, which totaled $1,500 Salaries Expense should be debited for

$1,500

each balance appearing in the ___ section of the worksheet is closed into the Income Summary account

Income Statement

each reversing entry is the exact opposite of the related ___

adjusting

The ___ of a building is portion of the original cost that has not yet been depreciated

book value

the balance sheet is arranged in a a ___ format if assets and liabilities are divided into groups of similar accounts and a subtotal is given for each group

classified

after the ___ entries are posted, the Sales account will have a zero balance

closing

cash, items that will normally be converted to cash within one year, and times that will be used up within one year are called ___ assets

current

on a classified balance sheet, accounts payable would appear in the ___ liabilities section

current

a net loss for the period and withdrawals by the owner cause a ___ in capital

decrease

the entry to reverse an adjustment for accrued interest expense includes a debit to ___

interest payable

when several subtotals and totals are computed before the net income is presented, the income statement is referred to as a ___ income

multiple step

If --- entries are recorded, there is no need to examine each transaction in the new fiscal period to see whether a portion applies to a past period and then divide the amount of the transaction between the two periods

reversing

the inventory ___ represents the time period it takes from the purchase of the inventory until its sale

turnover