Term
| Account Classification: Accrued Interest Receivable on Long-term invesstments |
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Definition
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Term
| Account Classification: Accrued Taxes Payable |
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Definition
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Term
| Account Classification: Mineral Reserves |
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Definition
| Property, Plant, and Equipment |
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Term
| Account Classification: Advances by Customers |
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Definition
| Current or Long-term Liability |
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Term
| Account Classification: Allowance for Bad Debt |
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Definition
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Term
| Account Classification: Appropriation for Bond Sinking Fund |
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Definition
| Retained Earnings - Appropriations are restrictions on RE |
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Term
| Account Classification: Bank Overdraft |
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Definition
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Term
| Account Classification: Bond Sinking Fund |
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Definition
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Term
| Account Classification: Current Portion of Mortgage Payable |
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Definition
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Term
| Account Classification: Discount on Bonds Payable |
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Definition
| Contra Long-term Liability |
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Term
| Account Classification: Goodwill |
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Definition
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Term
| Account Classification: Land Held for Future Plant Site |
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Definition
| Investment - does not become PPE until it is used |
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Term
| Account Classification: Marketable Securities |
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Definition
| Current Asset or Long-term Investment |
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Term
| Account Classification: Petty Cash Fund |
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Definition
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Term
| Account Classification: Provision for Income Taxes |
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Definition
| Expense - provisions are expenses |
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Term
| Account Classification: Stock Dividend Distributable/Payable |
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Definition
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Term
| Account Classification: Tools w/ 6 mo. useful life |
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Definition
| Expense - benefits do not exist beyond 1 year, therefore do not capitalize |
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Term
| Account Classification: Tools w/ useful life of 5 years |
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Definition
| Property, Plant, and Equipment - depreciated over life |
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Term
| Account Classification: Work in Process |
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Definition
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Term
| What are the 3 components of Other Comprehensive Income? |
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Definition
a. unrealized gains/losses on available for sale securities
b. certain foreign currency translation adjustments
c. minimum pension liability adjustments |
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Term
| What are the components of Comprehensive Income? |
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Definition
| Net Income + Other Comprehensive Income |
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Term
| At the end of the period, where does OCI close out to? |
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Definition
| Accumulated Other Comprehensive Income |
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Term
| Where is Accumulated Other Comprehensive Income located on the financial statements? |
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Definition
| Balance Sheet - Stockholder's Equity |
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Term
| Account Classification: Cash Short/Over |
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Definition
| Income Statement - Misc. revenue or expense |
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Term
| In periods of rising prices: The inventory cost assumption method that provides the highest ending inventory. |
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Definition
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Term
| In periods of rising prices: The inventory cost assumption method that provides the highest net income. |
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Definition
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Term
| In periods of rising prices: The inventory cost assumption method that provides the highest cost of goods sold. |
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Definition
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Term
| In periods of rising prices: The inventory cost assumption method that provides the lowest net income. |
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Definition
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Term
| In periods of rising prices: The inventory cost assumption method that provides the lowest income tax payable. |
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Definition
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Term
| Account Classification: Unrealized gain on available for sale security |
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Definition
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Term
| Account Classification: Unrealized gain on trading securities |
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Definition
| Income Statement - Other revenues/expenses |
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Term
| Account Classification: Realized gain on available for sale securities |
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Definition
| Income Statement - Other revenues/expenses |
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Term
| Account Classification: Realized gain on trading securities |
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Definition
| Income Statement - Other revenues/expenses |
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Term
| Account Classification: Construction in Process |
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Definition
| Current Asset - Inventory if being constructed for a customer, PPE if being constructed for ourselves. |
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Term
| Account Classification: Work in Process |
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Definition
| Current Asset - Inventory |
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Term
| Account Classification: Current Portion of Long Term Debt |
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Definition
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Term
| Account Classification: Stock owned in affiliated companies |
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Definition
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Term
| Account Classification: Treasury Stock |
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Definition
| Stockholder's Equity - as a reduction |
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Term
| What are effects on the accounts if inventory is overstated by 5,000? |
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Definition
Assets (Inventory) +5,000
Expenses (Cost of Goods Sold) -5,000
Net Income +5,000
Retained Earnings +5,000 |
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Term
| What is the cumulutive effect on retained earnings if in year 1 the company overstated inventory by 3,000 and in year 2 overstated inventory by 5,000? |
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Definition
Retained Earnings Overstated by 5,000
Solution year 1
Inventory +3,000; CGS -3,000; NI +3,000; RE +3,000
Year 2
Inventory +5,000
CGS -5,000+3,000 (from last year) = -2,000;
Net Income +2,000; RE +2,000+3,000 (balance) = +5,000 |
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