ACCY 201 Final exam Stewart Questions And Answers With Verified Tests

Assets - resources owned by a business Calculate gross margin when given net sales, cost of goods sold and net income. Example: A company has sales of $718,800 and cost of goods sold of $287,800. Its gross profit equals: - Gross profit/margin = sales - Cost of goods sold Example answer: $431,000 Calculate the amount of cash paid by a customer to a company when the customer pays within the discount period (1/10, n/30) - EXAMPLE: "$1000 - 1%/10 net 30" is written on a bill, the buyer can take a 1% discount ($1000 x 0.01 = $10) and make a payment of $990 within 10 days, or pay the entire $1000 within 30 days. Calculate the amount of interest that would be owed on a $18,000, 60-day, 8% note receivable at maturity. - 18,000 x 8% x 60/360 = $240 Calculate the balance in the cash account when given the beginning balance in cash and the amount of debits and credits to the cash account throughout the period. - Beg Balance: 1,000 Debits: 10,000 Credits: 2,000 1,000 + 10,000 - 2,000 = 9,000 Calculate the book value of an asset at the end of Year 2 after the asset has been depreciated using the double-declining-balance method. - Book Value = cost of asset- accumulated depreciation Double declining balance: 100%/useful life 2 x straight-line rate double-declining rate x beg. period book balance (to find year two subtract beg. balance by year 1 then multiply that by the double declining rate) Calculate the maturity date of a 90-day note. - calculate 90 days from whatever date is givenDefine "credit terms" - terms that indicate when payment is due for sales that are made on credit, possible discounts, and any applicable interest or late payment fees.