The Term Prehistory Refers to

question 30

Multiple Choice

The term prehistory refers to

• A)time periods before 1900.
• B)the period before the invention of writing.
• C)the earliest civilizations.
• D)only the civilization of Mesopotamia.
• E)the era prior to homo erectus.

Understand how to adjust and account for merchandise inventory in the accounting period.

Recognize the nature and classification of various accounts (Assets, Liabilities, Revenue, Expenses).

Comprehend the process of recognition and adjustment for unearned revenues.

Calculate the impact of transactions on Net Income and Cost of Goods Sold.

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Definitions:

Financial Leverage

The use of borrowed capital or debt to increase the potential return of an investment, amplifying both potential gains and losses.

Operating Leverage

A measure of how sensitive a company’s operating income is to a change in its sales volume, emphasizing the cost structure between fixed and variable costs.

EBIT

A gauge of company profits, Earnings Before Interest and Taxes, leaves out the charges for interest and taxes to show raw earnings.

Sales

The transactions involved in selling goods or services in the normal course of business, generating revenue for the company.