General accounting principles stem from long-used accounting practices.

Beats, Inc. uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is:

A report that lists a business’s accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

Cash and office supplies are both classified as current assets.

Which financial statement reports an organization’s financial position at a single point in time?

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

On November 19, Telphony Co. receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)

Use the following information as of December 31 to determine equity.     Cash $ 57,000 Buildings   175,000 Equipment   206,000 Liabilities   141,000

DJ’s Inc is a wholesaler that sells merchandise in large quantities. Its catalog indicates a list price of $300 per unit on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more. The cost of shipping the merchandise is $7 per unit under terms FOB shipping point. If a customer purchases 100 units of this product, what is the amount of sales revenue that DJ’s will record from this sale?