Accounting Game Chapter 9

Order fancy desserts, eat at fancy restaurants, watch lots of television, see wild stuff, spend money

Because summer was ending and it was time to go back to school

$16.00

<p>First In, Still Here</p> Signup and view all the answers

<p>Throw them out</p> Signup and view all the answers

<p>Write them off</p> Signup and view all the answers

<p>Earnings</p> Signup and view all the answers

<p>The purpose is to show how quickly assets can be converted to cash.</p> Signup and view all the answers

<p>If fixed assets are sold for more than book value, it is recognized as profit. If sold for less, it is recognized as a loss.</p> Signup and view all the answers

<p>The net profit after taxes is the remaining profit after income taxes have been deducted.</p> Signup and view all the answers

<p>The purpose of the income statement is to show the financial performance of a business over a specific period of time, including revenue, expenses, and net profit.</p> Signup and view all the answers

<p>$45.00</p> Signup and view all the answers

<p>$18.00</p> Signup and view all the answers

<p>Because $27 in equity is tied up in the building and the wagon.</p> Signup and view all the answers

<p>In descending order of liquidity.</p> Signup and view all the answers

<p>Reduce ending inventory to zero and increase Cost of Goods Sold and decrease Gross Profit.</p> Signup and view all the answers

<p>Inventory value affects the overall value of the business and can impact decision-making.</p> Signup and view all the answers

<p>Dust, cobwebs, and lack of movement on the shelves.</p> Signup and view all the answers

<p>People can be creative in how they present their inventory, so an expert can provide an unbiased and accurate assessment.</p> Signup and view all the answers

<p>The narrator decided to quit the lemonade business, at least for this summer.</p> Signup and view all the answers

<p>The total pretax earnings for the summer were $64.</p> Signup and view all the answers

<p>The total tax liability for the summer was $16.00.</p> Signup and view all the answers