Master the Accrual Method

Based on the information provided, how many lemons are needed to make the batch of lemonade?

What is the cost of one lemon?

How much did the older sister charge to make 60 glasses of lemonade?

According to the text, what is the formula for calculating the Cost of Goods Sold (COGS)?

Based on the information provided, what was the total amount of purchases made?

From the given information, what was the net profit after taxes?

Which method of accounting is used to fill out the Income Statement?

What was the cost of production for one batch of lemonade?

What was the total amount of sales for the week?

What was the bad debt expense for the week?

Which financial statement would you record the Bad Debt expense on?

What is the Bad Debt expense?

What is the impact of the Bad Debt expense on earnings?

What is the total profit or earnings for the lemonade sale?

What is the purpose of the $2 payment to the banker?

What does the interest expense represent on the Income Statement?

What does the $3 payment for the insurance policy represent?

Where does the insurance policy show up in the financial statements?

Which accounting method recognizes sales when they are earned, regardless of when the cash is received?

What happens to the value of a prepaid expense as it is used up?

What is the impact of an expense on earnings?

What is the purpose of the Accrual Method of accounting?

Which type of inventory is lemonade considered?

What kind of inventory was lemonade while it was being made?

Are the raw materials considered available for sale?

What was the total amount of sales for the lemonade?

Which type of inventory is lemonade considered?

What kind of inventory was lemonade while it was being made?

Are raw materials considered available for sale?

What happens to the cost of production labor when it is added to inventory?