A maker who dishonors a note is one who does not pay it at maturity.

The profit margin ratio is the same as the gross profit ratio.

A voucher system establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.

On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klein will make on March 12 is:

All of the following are true of the number of days’ sales uncollected ratio except:

The following statements regarding gross profit are true except:

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

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is:

Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be:

The following statements regarding gross profit are true except: