definition of Collection period:
Accounts receivable / average charge sales per day
average # of days a company takes to collect payment from its A/R
Definition of Rate of return on net sales:
(net income / net sales) * 100
$ that remain after all expenses are deducted from net sales
Defintion of Debt ratio:
Total liabilities / total assets
Shows what proportion of the assets are financed with borrowed money
Defintion of Equity ratio:
Total equity / total assets
Shows what proportion of the total assets are financed with the shareholders’ money
Times interest earned:
Net income / interest expense
Measures the company’s ability to cover its interest expense
how does it look like on a general journal when:
its a typical purchase on account with HST
Supplies 450
HST recoverable 58.50
A/P 508.50
how does it look like on a general journal when:
A typical purchase for cash with HST
Maintenance expense 330
HST recoverable 42.90
Bank 372.90
how does it look like on a general journal when:
Typical sale on account with HST
A/R 1017
Fees earned 900
HST payable 117
how does it look like on a general journal when:
Typical sale for cash with HST
Bank 5650
Fees earned 5000
HST Paybale 650
When is it HST payable or recivable?
Payable: When I make a sale
Receivable: When company buys something
whast the journal entry for the following transaction?
Paid $200 cash for supplies, you’d have to identify below:
Supplies $200
Bank $200
