Study Guide Accounting Principles 1 Ch. 3&4
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Profit Margin:
= Net Income / Net Sales
What is the Current Ratio and what is its purpose?
=current assets/ current liabilities
Accruals are involved in
Accrued Expenses and Accrued Revenues
What are Current Items?
Current items are those expected to come due, both collected and owed, within the longer of one year or the company's normal operating cycle.
Land is not
depreciated
Type b involves:
adjusting accounts
If the Income Summary account has a debit balance after posting the first two entries, you would:
-The amount would be the amount of the balance in the Income Summary account after posting the first two closing entries.