ACC 231 REVIEW EXAMS PREP ALL QUESTIONS
AND ANSWERS SURE A+
✔✔Items on Multi-Step Income Statement - ✔✔Sales, net
COGS
Gross profit
Total operating expenses
Operating income
Interest expenses
Net income
-Acronym SCGTOIN
-expenses, income, expense, income
✔✔Current Assets - ✔✔cash and other resources that are expected to be sold,
collected, or converted to cash within one year
✔✔Examples of Current Assets - ✔✔Prepaid Expenses, Cash, Accounts Receivable,
Supplies, Inventory
✔✔Current Liability - ✔✔liabilities that will be paid within one year
, ✔✔Examples of Current Liability - ✔✔Accounts Payable, Wages Payable, Unearned
Revenue, Taxes Payable
✔✔Non-current (long-term) Asset - ✔✔asssets that are tangible, long-lived and used to
produce and/or sell products and services
✔✔Non-current (long-term) Liabilitiy - ✔✔a liability that is not due within a year or
operating cycle
✔✔Examples of Non-current Asset - ✔✔buildings, land, equipment, accumulated
depreciation
✔✔Examples of Non-current Liabilitiy - ✔✔Notes Payable, Mortgages Payable, Bonds
Payable, Lease Obligations
✔✔Net Sales and Revenue Formula - ✔✔Sales - Discounts - Returns & Allowances
✔✔Definition of Gross Profit % Method - ✔✔estimates the value of inventory
✔✔COGS Formula - ✔✔Sales * (1- GP%)
✔✔Cost of Goods Available for Sale - ✔✔Beginning Inventory + Net Purchases
✔✔Gross Profit Formulas - ✔✔-Net Sales - Cost of Goods Sold (COGS)
-Sales * GP%
✔✔Gross Profit % - ✔✔Gross Profit / Net Sales
✔✔Operating Income - ✔✔Gross Profit - Operating Expenses
✔✔Earnings Per Share (EPS) - ✔✔the profit or loss of each unit of ownership
✔✔Earnings Per Share (EPS) Formula - ✔✔Net Income / Average Outstanding Shares
✔✔Average Outstanding Shares - ✔✔(Beginning Shares Outstanding + End Shares
Outstanding)/2
✔✔Ways to value inventory - ✔✔-Inventory Shrinkage
-Gross Profit
-Lower of Cost or Market
✔✔Inventory Shrinkage - ✔✔occurs when the inventory count does not equal your
accounting records (ex. inventory is stolen or damaged)
AND ANSWERS SURE A+
✔✔Items on Multi-Step Income Statement - ✔✔Sales, net
COGS
Gross profit
Total operating expenses
Operating income
Interest expenses
Net income
-Acronym SCGTOIN
-expenses, income, expense, income
✔✔Current Assets - ✔✔cash and other resources that are expected to be sold,
collected, or converted to cash within one year
✔✔Examples of Current Assets - ✔✔Prepaid Expenses, Cash, Accounts Receivable,
Supplies, Inventory
✔✔Current Liability - ✔✔liabilities that will be paid within one year
, ✔✔Examples of Current Liability - ✔✔Accounts Payable, Wages Payable, Unearned
Revenue, Taxes Payable
✔✔Non-current (long-term) Asset - ✔✔asssets that are tangible, long-lived and used to
produce and/or sell products and services
✔✔Non-current (long-term) Liabilitiy - ✔✔a liability that is not due within a year or
operating cycle
✔✔Examples of Non-current Asset - ✔✔buildings, land, equipment, accumulated
depreciation
✔✔Examples of Non-current Liabilitiy - ✔✔Notes Payable, Mortgages Payable, Bonds
Payable, Lease Obligations
✔✔Net Sales and Revenue Formula - ✔✔Sales - Discounts - Returns & Allowances
✔✔Definition of Gross Profit % Method - ✔✔estimates the value of inventory
✔✔COGS Formula - ✔✔Sales * (1- GP%)
✔✔Cost of Goods Available for Sale - ✔✔Beginning Inventory + Net Purchases
✔✔Gross Profit Formulas - ✔✔-Net Sales - Cost of Goods Sold (COGS)
-Sales * GP%
✔✔Gross Profit % - ✔✔Gross Profit / Net Sales
✔✔Operating Income - ✔✔Gross Profit - Operating Expenses
✔✔Earnings Per Share (EPS) - ✔✔the profit or loss of each unit of ownership
✔✔Earnings Per Share (EPS) Formula - ✔✔Net Income / Average Outstanding Shares
✔✔Average Outstanding Shares - ✔✔(Beginning Shares Outstanding + End Shares
Outstanding)/2
✔✔Ways to value inventory - ✔✔-Inventory Shrinkage
-Gross Profit
-Lower of Cost or Market
✔✔Inventory Shrinkage - ✔✔occurs when the inventory count does not equal your
accounting records (ex. inventory is stolen or damaged)
