Break-Even Point in Units formula correct answers total fixed cost / contribution margin per unit
= break even in units
Break-Even Point in Sales ($) Formula correct answers total fixed cost / contribution margin
ratio = Break even in units
contribution margin ratio formula correct answers contribution margin / sales (or price) =
contribution margin ratio
Variable cost ratio formula correct answers variable cost / sales (or price) =variable cost ratio
The three functions of an accounting system are? correct answers Analysis, Bookkeeping, and
Evaluation
The US organization that monitors the financial accounting disclosures of companies (both U.S.
and foreign) whose stocks trade on U.S. stock exchanges? correct answers SEC
What shows the financial position of an organization's assets, liabilities, and equity at a specific
date in time? correct answers Balance Sheet
The US organization that sets accounting standards for publicly listed companies is? correct
answers FASB
what is the third step in the financial accounting cycle? correct answers Summarize the Effects of
Transactions
What is the first step in the financial accounting cycle? correct answers Analyze Transactions
What is the fourth step in the financial accounting cycle? correct answers Prepare Reports
What shows the amount of cash inflows and outflows for an organization's operating, investing,
and financing activities? correct answers Statement of Cash Flows
What is the language of business? correct answers Accounting
,What shows the profitability of an organization by comparing revenues and expenses for a period
of time? correct answers Income Statement
what is the second step in the financial accounting cycle? correct answers Record the Effects of
Transactions
Utilities expense is classified as correct answers Expense
Notes payable is classified as correct answers Liability
Cash is classified as correct answers Asset
Prepaid expense is classified as correct answers Asset
Service Revenue is classified as correct answers Revenue
Taxes Payable is classified as correct answers Liability
Patents are classified as correct answers Asset
Accounts Payable is classified as correct answers Liability
Inventory is classified as correct answers Asset
Retained Earnings is classified as correct answers Equity
Accounts receivable is classified as correct answers Asset
Salaries Expense is classified as correct answers Expense
Mortage payable is classified as correct answers Liability
Maintenance Expense is classified as correct answers Expense
Fee income is classified as correct answers Revenue
Unearned revenue is classified as correct answers Liability
capital stock is classified as correct answers Equity
buildings are classified as correct answers Asset
Sales are classified as correct answers Revenue
Retained earnings are classified as correct answers Equity
, differential costs correct answers future costs that change as a result of a decision; also called
incremental or relevant costs
break-even point correct answers the amount of sales at which total costs of the number of units
sold equal total revenues; the point at which there is no profit or loss
net income correct answers an overall measure of the performance of a company that is equal to
revenues minus expenses for the period
Form 10-K correct answers a form required by the SEC for businesses to report a comprehensive
summary of financial performance, including the three primary financial statements
Dividends correct answers a sum of money distributed to the owners (stockholders) of a
corporation
Segments correct answers parts of an organization requiring separate reports for evaluation by
management
Raw Materials Inventory correct answers inventory of raw materials that have not yet begun the
production process
Profit Center correct answers An organizational unit in which a manager has control over and is
held accountable for both cost and revenue performance
Long-term assets correct answers Assets that are illiquid and that are needed to operate a
business over an extended period of time
Segment correct answers a subsection of a company that is distinct from the whole of the
company based on its operational activities, customers, or geographic location
comparative financial statements correct answers Financial statements that include information
for both the current year and preceding year(s) that are prepared for users to identify any
significant changes in particular items
Horizontal analysis correct answers a method of financial statement analysis that compares a
firm's results from year to year
Long-term liabilities correct answers liabilities that are not expected to be satisfied within a year
Activity-based costing (ABC) correct answers a method of attributing overhead costs to products
based on measurable factors that relate to activities that create overhead costs
International Accounting Standards Board (IASB) correct answers a committee formed to
develop international accounting standards
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