After Creating a New QuickBooks Data File for an Existing

question 27

Multiple Choice

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account.

• A)Uncategorized Expenses
• B)Uncategorized Income
• C)Opening Balance Equity
• D)None of the above

Understand how to calculate and interpret the gross margin ratio.

Identify and understand the components and significance of ending inventory.

Calculate and understand the implications of the current ratio and acid-test ratio for business liquidity.

Understand the calculation and business implications of the acid-test ratio.

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Definitions:

Salary Allowances

Additional compensations over the base salary that may cover various specific needs or expenses.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total sales; a key indicator of financial health.

Salary Allowance

Salary allowance is a fixed amount of money paid to employees in addition to their regular salary, often to cover specific work-related expenses.

Average Capital Investment

The mean amount of money that has been invested in the assets of a company over a specific period.