Accountıng I

Yanıt Açıklaması: Specific Identification Method is an inventory costing method based on the specific cost of particular units of inventory. The correct answer is C.

Yanıt Açıklaması: Conservatism in accounting means being careful in reporting items in the financial statements. Conservatism follows these ideas: • Anticipate no gains, but provide for all probable losses. • If in doubt, record an asset the lowest reasonable amount and reliability at the highest reasonable amount. • When there is a question, record an expense rather than an asset. • When you are faced with a decision between two possible options, you must choose the option that undervalues, rather than overvalues, your business The purpose of conservatism is to report realistic figures and never exaggerate assets or net income

Yanıt Açıklaması: Receivable is an accounting term associated with the amounts that are owed to the business by other parties, mainly its customers.

Yanıt Açıklaması: Manufacturers normally have three inventory accounts in their financial statements: raw materials, work in process, and finished goods

Yanıt Açıklaması: Although its name is Cost of Goods Sold, it is an expense item recorded under sales account in income statement. Because according to the “matching principle” expenses should be recorded in the period in which they generate revenues.

Yanıt Açıklaması: The correct answer is C. Net profit is included in both the balance sheet and income statement. It is the balance sheet showing the entity's assets and resources and the financial statements for a given date. The ability to show revenues and expenses for a certain period belongs to the income statement.

Yanıt Açıklaması: In order to find out the reporting value for inventories on hand, we have to compare cost with market value. In this question, we know the cost was TL 10,000, but we have to calculate market value or net realizable value. When we deduct estimated cost of sales from estimated sales value, we find it as TL 13,500. Since the cost is lower, we keep on reporting inventories with TL 10,000.

Yanıt Açıklaması: Conservatism in accounting means being careful in reporting items in the financial statements. Conservatism follows these ideas: • Anticipate no gains, but provide for all probable losses. • If in doubt, record an asset the lowest reasonable amount and reliability at the highest reasonable amount. • When there is a question, record an expense rather than an asset. • When you are faced with a decision between two possible options, you must choose the option that undervalues, rather than overvalues, your business. The correct answer is D.

Yanıt Açıklaması: The correct answer is C. Merchandise inventory account decreases as a result of sales discount.

Yanıt Açıklaması: When COGS is deducted from sales revenue, gross profit is calculated. Gross profit evaluates the company’s profitability in terms of selling activities.

Yanıt Açıklaması: The correct answer to question is option A. In a perpetual inventory system, balance of inventory accounts is always updated as each transaction occurs.

Yanıt Açıklaması: The correct answer to question is option A. The company debit 600 of the cost of the goods sold, the inventories credit 600.

Yanıt Açıklaması: In the specific identification method, the company knows exactly which item was sold and exactly what the item cost. So, specific Identification Method is an inventory costing method based on the specific cost of particular units of inventory. The correct choice is A.

Yanıt Açıklaması: Accounts receivable is the amount owed to a company by customers as a result of delivering goods or services. It occurs when a business makes sales on credit.

Yanıt Açıklaması: Return facility is often part of a company’s marketing program that enables it to maintain competitiveness. It is basically a contra sales account that records (1) any goods returned by the customers and (2) any allowance given to a customer because the company delivered defective or improper goods. As a result, this will reduce the company’s account receivable. The correct answer is C.

Yanıt Açıklaması: Accounts receivable is recognized when a company delivers good or services on credit. The correct answer is C.

Yanıt Açıklaması: If the merchandise inventory is sold, its cost is taken from inventory account in balance sheet and recognized as an expense (cost of goods sold) in the income statement.

Yanıt Açıklaması: Percentage of sales basis is the percentage relationship between the amount of credit sales and estimated losses from uncollectible accounts.

Yanıt Açıklaması: Net sales revenue = Sales Revenue – (Sales Returns and Allowances + Sales Discounts)

Yanıt Açıklaması: A bank reconciliation is a statement that explains any differences between the balance shown on the bank statement and the balance shown on the business’s accounting records.