Selected Transactions for Parton Company Are Listed Below

question 86

Essay

Selected transactions for Parton Company are listed below. List the number of the transaction and then descriSample: Made initial cash investment in the business.
The answer would be-Increase in assets and increase in owner's equity.
1. Paid monthly utility bill.
2. Purchased new display case for cash.
3. Paid cash for repair work on security system.
4. Billed customers for services performed.
5. Received cash from customers billed in 4.
6. Withdrew cash for owner's personal use.
7. Incurred advertising expenses on account.
8. Paid monthly rent.
9. Received cash from customers when service was rendered.

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Definitions:

Return on Sales Ratio

A financial metric that measures the efficiency of a company in generating profits from its sales by comparing net income to total sales revenue.

Liquidity

The ease with which assets can be converted into cash without significant loss in value, crucial for meeting immediate and short-term obligations.

Asset Management

The organized method of creating, managing, preserving, and trading assets in an economically efficient way.

Profitability

A measure of the efficiency of a company in generating profits from its operations, typically evaluated through various financial ratios.