When Working with T Accounts,an Important Rule to Remember Is

question 81

Multiple Choice

When working with T accounts,an important rule to remember is:

• A)when an account is debited,an amount is entered on the right-hand side on the T account.
• B)an increase to accounts payable will be recorded as a debit.
• C)to credit an account means to enter an amount on the right-hand side of the T account.
• D)the debit side of a T account is on the right-hand side of the T account for assets and expenses.

Understand the principles underlying the calculation of gross and net profit margins.

Identify the differences between periodic and perpetual inventory systems.

Calculate gross profit, net profit, and profit margins from given financial information.

Understand the impact of inventory management and pricing strategies on a company’s financial performance.

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Definitions:

Advantage

The performance characteristic of a product that describes how it can be used or will help the buyer.

Benefit

A favorable result the buyer receives from the product because of a particular advantage that has the ability to satisfy a buyer’s need.

Trial Close

A sales technique where the seller proposes a closing question or statement to gauge the buyer's readiness to complete the purchase.

Selling Point

A feature or benefit of a product that makes it attractive to potential buyers.