Shared Flashcard Set

Details

Accounting 316
Chapter 5
14
Accounting
Undergraduate 2
11/06/2013

Additional Accounting Flashcards

 


 

Cards

Term

·       Which of the following is not one of the classifications in owners’ equity?

Definition

o   Noncontrolling interest

o   Retained earnings

o   Accumulated capital

Capital stock

Term

A general description of the depreciation methods applicable to major classes of depreci-able assets

Definition

should be included in corporate financial statements or notes thereto

Term
Accumulated depreciation is a contra asset
Definition
True
Term

·       A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations

Definition
True
Term

·       The balance sheet is sometimes referred to as the Statement of Net Resources

Definition
False
Term

·       Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information

Definition
True
Term

The correct order to present current assets is

Definition

cash, accounts receivable, inventories, prepaid items

Term

Long-term liabilities include

Definition

o   obligations not expected to be liquidated within the operating cycle

o   all of these answer choices are correct

o   obligations payable at some date beyond the operating cycle

o   deferred income taxes and most lease obligations

Term

·       The statement of cash flows provides answers to all of the following questions except

Definition

o   what was the change in the cash balance during the period?

o   what was the cash used for during the period?

o   where did the cash come from during the period?

o   what is the impact of inflation on the cash balance at the end of the year?

Term

·       Significant accounting policies may not be

Definition

o   omitted from financial-statement disclosure

Term

Other assets include all of the following except

Definition

 

o   Timberlands

 

o   Assets in special funds

 

o   Restricted cash

Property held for sale

 

 

Term

·       Which of the following is not a method of disclosing pertinent information?

Definition

o   Parenthetical explanations

o   Supporting schedules

o   Cross reference and contra items

o   All of these are methods of disclosing pertinent information

Term

·       The stockholders' equity section is usually divided into what three parts?

Definition

stock, additional paid-in capital, retained earnings

Term

·       Financial flexibility is a company’s ability to respond and adapt to financial adversity and unexpected needs and opportunities

Definition
True
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