Ag Accounting Final Review

Long-term investments can include land held for future expansion

The ____________ depreciation method allocates equal amounts of an asset's cost to depreciation during its useful life. 

Revenue and expense accounts are permanent(real) accounts and should not be closed at the end of the accounting period. 

__ are required at the end of the accounting period because certain internal transactions and events remain unrecorded. 

The ___________________ account is a temporary account used only in the closing process. 

The gross margin ratio equals net sales less ___________ divided by net sales. 

The Income Summary account is a permanent account that will be carried forward period after period

A ____ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses. 

Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their __________ year. 

A current ratio of 2:1 suggests that a company has ____________ current assets to cover current liabilities. 

A classified balance sheet organizes assets and liabilities into subgroups that provide more information. 

A ___________ inventory system updates the accounting record for inventory only at the end of an accounting period. 

When there is a net loss the Income Summary account would have a credit balance. 

______________ revenues are liabilities requiring delivery of products and for services. 

The buyer is responsible for paying shipping costs and bears the risk of damage or loss when goods are in transit. 

If all columns of a completed work sheet balance, you can be sure that no errors were made in its preparation. 

The ______________ refers to the steps in preparing financial statements for users. 

_____ are long-term resources used to produce or sell products and services; lack physical form and uncertain benefits.

Adjusting is a three-step process (1) ___, (2) ___, and (3) ___. Which one is NOT a part of that process?

Merchandise that customers return to the seller after a sale is referred to as ___________________. 

A ___________ is an intermediary that buys products from manufacturers and sells to retailers. 

_________________ are the amounts and timing of payment from a buyer to a seller. 

Profit margin = ___________________ divided by net sales.