Term
| Notes payable due within 60 days appears on |
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Definition
| Current liability on Balance Sheet |
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Term
| amount company expects to collect from customer appears on ... |
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Definition
| the balance sheet under current assets |
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Term
| Net income appears on which financial statement |
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Definition
| Income statement and statement of retained earnings |
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Term
| The FASB is responsible for establishing... |
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Definition
| generally accepted rules of accounting |
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Term
| financial statements are... |
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Definition
| the business documents that companies use to report their results of financial activities to various groups |
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Term
| going concern assumption of accounting... |
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Definition
| holds that the entity will remain in operation long enough to use its existing assets |
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Term
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Definition
| assets=liabilities + stock holder equity |
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Term
| Sole proprietorship characteristics |
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Definition
| distinct entity, separate from its owner accounting |
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Term
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Definition
| balance sheet, long term asset |
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Term
| main source of cash comes from its main business comes from... |
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Definition
| operating activities on statement of cash flow |
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Term
| three factors that influence accounting decisions... |
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Definition
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Term
| accounting information is subject to the constraints of... |
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Definition
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Term
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Definition
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Term
| valuation of assets on the balance sheet is based on... |
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Definition
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Term
| purchases of long term assets are examples of... |
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Definition
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Term
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Definition
| slowing merging with US standards of accounting |
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Term
| an investor wants to view a companies financial position at the end of the period...where do they look? |
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Definition
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Term
| corporations paid in capital includes... |
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Definition
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Term
| which business are the owners legally distinct from the business |
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Definition
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Term
| which business provides the least protection to bankers and other creditors... |
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Definition
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Term
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Definition
| decreases in retained earnings resulting from operations...also are debits when they are paid |
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Term
| these financial statements cover a period of time |
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Definition
| statement of cash flows and income statement |
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Term
| statement that reports revenues and expenses for the period... |
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Definition
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Term
| gross profit is reported on the... |
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Definition
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Term
| where does cash received from sale of stock go on statement of cash flows... |
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Definition
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Term
| the sum of outsider claims plus insider claims equals... |
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Definition
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Term
| who controls the corporation |
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Definition
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Term
| example of selling, general, and administrated expense is.. |
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Definition
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Term
| the relevant measure of the value of assets of a company that is going out of business is... |
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Definition
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Term
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Definition
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Term
| normal balance for revenue account..because revenues increase |
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Definition
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Term
| a sale is made on account...asset created is .. |
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Definition
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Term
| accounting transactions are initially recorded to... |
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Definition
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Term
| this account is increased by a debit... |
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Definition
| assets, expense, dividends |
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Term
| increase in stock holders equity that result in delivering goods... |
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Definition
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Term
| a record of all changes in a particular asset, liability, or stockholder equity during a period is called |
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Definition
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Term
| company paid cash owed to a creditor...it decreased cash and... |
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Definition
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Term
| if the credit to record a purchase of supplies on account is not posted then... |
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Definition
| liabilities will be understated |
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Term
| balance showed 540,000 instead of 450,000...this is an example of |
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Definition
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Term
| this account is increased by a debit and has normal balance with a debit... |
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Definition
| an expense account and a asset |
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Term
| if the credit to record a payment to accounts payable was not posted |
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Definition
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Term
| what is the order for preparing financial statements |
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Definition
| journal, ledger, trial balance, financial statements |
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Term
| prepaid expense appears on... |
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Definition
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Term
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Definition
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Term
| in which months should revenue be recorded |
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Definition
| in the month the good is shipped to the customer |
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Term
| when something is paid or received in advanced... |
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Definition
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Term
| real-estate company fails to accrue commission revenue.. |
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Definition
| assets are understated and net income is under stated |
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Term
| what effect does accrued revenue adjustment have on a company's net income... |
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Definition
| adjustments increase net income for the period |
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Term
| the revenue principal requires that revenue is recorded when.. |
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Definition
| a good is delivered to a customer |
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Term
| an example of a temporary account is... |
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Definition
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Term
| accumulated depreciation is... |
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Definition
| a contra asset with a normal credit balance |
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Term
| what order are financial statements prepared |
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Definition
| income statement, statement of retained earnings, balance sheet |
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Term
| what are indications that an error is made in the trial balance |
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Definition
| accumulated depreciation has a credit balance, service revenue has a debit balance, salary expense has a debit balance |
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Term
| how does an accrued adjustment effect the financial statement |
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Definition
| increases expenses increases liabilities |
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Term
| adjusting entry in accrual accounting for income tax expense includes... |
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Definition
| credit to income tax payable |
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Term
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Definition
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Term
| a company's ___ has the primary responsibility for establishing and maintaining a company's system of internal control |
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Definition
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Term
| in which order are documents prepared for purchasing |
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Definition
| purchase order, receive payment, payment packet |
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Term
| 3 of the components of internal control are... |
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Definition
| monitoring controls, risk assessment, and control enviroment |
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Term
| separation of duties and protection of assets are part of... |
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Definition
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Term
| EFT on the bank statement is.. |
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Definition
| added to the book balance |
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Term
| book side of bank reconciliation includes... |
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Definition
| NSF checks, bank collections, and interest earned |
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Term
| fraud triangle includes.. |
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Definition
| motive, opportunity, rationalization |
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Term
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Definition
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Term
| most acceptable way to measure bad debts... |
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Definition
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Term
| examples of short term invenstments |
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Definition
| current, trading, and short-term |
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Term
| balance for allowance for uncollectable accounts is considered prior to the year adjustments under... |
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Definition
| aging of receivables method |
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Term
| quick ratio and number of days sales measures... |
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Definition
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Term
| unrealized loss on marketable security means... |
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Definition
| historical cost of security exceeds current market value |
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Term
| investments fall into 3 categories... |
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Definition
| investing, available for sale, held for sale |
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Term
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Definition
| a balance sheet approach since it focuses on accounts receivable |
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Term
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Definition
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Term
| when inventory prices increase, fifo costing method usually will yield a COGs that is... |
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Definition
| lower than the COGs method in LIFO method |
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Term
| widely used method for estimating the value of ending inventory is.. |
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Definition
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Term
| when using lower of cost or market...market refers to... |
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Definition
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Term
| when does the cost of inventory become an expense... |
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Definition
| when inventory is delivered to the customer |
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Term
| if prices are rising and the company is using LIFO, large purchases at the end of the year will... |
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Definition
| decrease income taxes paid |
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Term
| disclosure principal requires that management prepare financial reports but do not... |
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Definition
| forecast expected future earnings to help investors decide whether or not to invest in the company |
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Term
what is the average cost method
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Definition
| available for sale divided by units available for sale |
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Term
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Definition
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Term
when computing depreciation for a plant asset, what must be estimated
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Definition
useful life and residual value
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Term
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Definition
| amortized and has and indefinite life |
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Term
| the depreciation attempts to do what? |
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Definition
| match the revenues earned by the asset and cost of the asset |
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Term
| when an asset is fully depreciated it will... |
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Definition
| have the book value equal the salvage value, the asset has reached the end of its useful life |
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Term
| what type of an account is accumulated depreciation |
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Definition
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Term
| an example of capital expenditures are... |
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Definition
| taxes paid in conjunction with the purchase of office equipment |
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Term
| what is amortization expense recorded as |
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Definition
| intangible assets with an finite life |
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Term
| the process of allocating an asset's cost to expense over the period in which the asset is used is called... |
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Definition
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Term
| what account does a capital expenditure add to... |
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Definition
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Term
| capital expenditures are not immediately expensed because... |
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Definition
| they increase the asset's capacity |
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Term
| an expenditure that increases an asset's capacity or extends its useful is called... |
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Definition
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Term
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Definition
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Term
| what does discounts on payable do... |
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Definition
| increases interest expense on the income statement |
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Term
| total interest expense over the life of a bond is... |
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Definition
| total sum of payments plus total discount |
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Term
| what does amortizing the discount on bonds payable do |
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Definition
| increases the recorded amount for interest expense |
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Term
| if the bond was issued at a premium, what does the journal entry read... |
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Definition
| debit to interest expense, debit to premium on bonds payable, and credit to cash |
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Term
| if the bond is issued at a discount... |
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Definition
| the interest expense increases until it reaches maturity |
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Term
| company issues bonds payable that pay interest may 1st and nov 1st, what is the adjusting entry |
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Definition
| credit to discounts on bonds payable |
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Term
| failure to accrue interest expense results in... |
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Definition
| overstatement of net income and understatement of liabilities |
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Term
| under effective interest method of amortization, interest expense each period is calculated by... |
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Definition
| carrying bonds multiplied by the effective interest rate for the appropriate time period |
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Term
| a bond that matures in installments is... |
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Definition
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Term
| contingent liability be recorded if... |
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Definition
| if the account can be estimated or if the future event will occur |
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Term
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Definition
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Term
| Proportional distribution of a it's own stock to its stockholders is a... |
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Definition
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Term
| on statement of cash flows, equity falls under.. |
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Definition
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Term
| corporation issued a 5% dividend, the debit to retained earnings is an amount equal to.. |
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Definition
| the market value at which the shares are issued |
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Term
| reissuance of treasury stock above it's cost is on which parts of the statement of cash flows |
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Definition
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Term
| what does the purchase of treasury stock do to the accounts... |
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Definition
| decreases assets and equity |
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Term
| what is double taxation... |
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Definition
| corporation pays tax on earnings and the share holders pay taxes on dividends |
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Term
| declaration and distribution of stock dividends does what to accounts... |
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Definition
| increases stock holders equity and decreases retained earnings |
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Term
| how are stocks organized when stated on the balance sheet... |
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Definition
| preferred stock, common stock, retained earnings |
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Term
| treasury stock plus stock outstanding equals the number of shares that... |
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Definition
| have been authorized but not issued |
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Term
| dividends in arrears on cumulative preferred stock are... |
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Definition
| disclosed in notes on financial statements |
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Term
| numerator in the equation for rate of return on common equity... |
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Definition
| net income minus preferred dividends |
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Term
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Definition
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Term
in the equity method for long term assets should never report what...
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Definition
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Term
| If a company pays interest semi annually, the second journal entry looks like... |
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Definition
| interest receivable and interest revenue |
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Term
| the entry to eliminate the investment in the subsidiary account effects... |
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Definition
| total assets and total equity reported by the consolidated company |
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Term
| a gain on sale of long term investment using the equity method is determined by comparing the cash received with ... |
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Definition
| the cost of the long term investment, adjusted for the investor's share of the investee's net income and cash dividend, while the investment is held by the comapny |
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Term
| when foreign currency straightens from the day of the sale... the company should record what.. |
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Definition
| foreign currency gain on transaction |
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Term
| the amortization of a discount on bonds payable purchased as a long term investment does what... |
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Definition
| increases the amount on the investment account |
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Term
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Definition
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Term
| unrealized gains or losses on availible for sale are reported as... |
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Definition
| other comprehensive income, they aid in the determination of net income |
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Term
| financial statement that reports changes in all categories of equity is called... |
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Definition
| statement of stock holders equity |
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Term
| how do you calculate actual market value of a corporation.. |
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Definition
| multiply shares outstanding by the current market share price |
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Term
| how is the income statement organized |
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Definition
| income from continuing operations, discounted operations, extraordinary gains and losses |
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Term
| shipping more to customers than what they ordered is called... |
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Definition
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Term
| statement of stock holders equity will not include what kind of transaction.. |
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Definition
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Term
| prior period adjustment are added or subtracted from.. |
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Definition
| beginning retained earnings |
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Term
| company sold an unused building at a loss...which area would it fall under.. |
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Definition
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Term
| earnings per share is calculated for... |
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Definition
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Term
| which stock type does not effect the common stock account.. |
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Definition
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Term
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Definition
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Term
| increases and decreases in long term liabilities are reported under what section |
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Definition
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Term
| cash recipts from investing activities include.. |
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Definition
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Term
| on indirect method statement of cash flows, a gain on sale of assets is... |
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Definition
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Term
| purchase of treasury stock would be recorded under which section of the statement of cash flows? |
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Definition
| cash outflow under financing |
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Term
| statement of cash flow is created and shows increases and decreases in assets, what method was used... |
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Definition
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Term
| using the indirect method, an increase in accounts payable during the period is... |
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Definition
| added to net income to determine net cash provided by financing activities |
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