Ag Accounting Final Review

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

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

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

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

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

Long-term investments can include land held for future expansion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Profit margin = ___________________ divided by net sales. 

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