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[Show more]Accrued Liabilities liabilities for expenses that have been incurred but not paid at the end of the accounting period 
Amortization Schedule a table showing the gradual reduction in a balance over its life; in the context of loans and notes, an amortization schedule shows the payment of interest and...
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Add to cartAccrued Liabilities liabilities for expenses that have been incurred but not paid at the end of the accounting period 
Amortization Schedule a table showing the gradual reduction in a balance over its life; in the context of loans and notes, an amortization schedule shows the payment of interest and...
A primary benefit of performing a bank reconciliation is: 
accuracy of cash reported in the balance sheet. accuracy of liabilities reported in the balance sheet. accuracy of revenues reported in the income statement. accuracy of cash reported in the balance sheet. 
A bank reconciliation reconciles t...
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Add to cartA primary benefit of performing a bank reconciliation is: 
accuracy of cash reported in the balance sheet. accuracy of liabilities reported in the balance sheet. accuracy of revenues reported in the income statement. accuracy of cash reported in the balance sheet. 
A bank reconciliation reconciles t...
The date when a cash dividend becomes a legal obligation is on the a. payable date b. declaration date c. date of record d. last day of the corporate year 
The journal entry on the date of record is a. To debit retained earnings and credit dividends payable b. non existent. no journal entry is requi...
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Add to cartThe date when a cash dividend becomes a legal obligation is on the a. payable date b. declaration date c. date of record d. last day of the corporate year 
The journal entry on the date of record is a. To debit retained earnings and credit dividends payable b. non existent. no journal entry is requi...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During the year Kincaid reported $72,500 of credit sales. Kincaid wrote off $550 of receivables as uncollectible in Year 2. Cash collections of rec...
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Add to cartOn January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During the year Kincaid reported $72,500 of credit sales. Kincaid wrote off $550 of receivables as uncollectible in Year 2. Cash collections of rec...
On-a-Roll, Inc. amortizes its copyright of $20,000 over 20 years. Miss Hap, the bookkeeper, forgot to record the amortization in the current year. The effect of this mistake causes ______. assets to be overstated net income to be overstated 
Which of the following is contra-asset account? Allowance ...
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Add to cartOn-a-Roll, Inc. amortizes its copyright of $20,000 over 20 years. Miss Hap, the bookkeeper, forgot to record the amortization in the current year. The effect of this mistake causes ______. assets to be overstated net income to be overstated 
Which of the following is contra-asset account? Allowance ...
What is the operating cycle? series of activities that a company undertakes to generate revenues and ultimately cash 
Service company -Sells services rather than physical goods -No inventory 
Merchandising company -Sells goods that have been obtained from a supplier -Purchase a finished good and re-...
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Add to cartWhat is the operating cycle? series of activities that a company undertakes to generate revenues and ultimately cash 
Service company -Sells services rather than physical goods -No inventory 
Merchandising company -Sells goods that have been obtained from a supplier -Purchase a finished good and re-...
Long-lived assets -Resources owned by a business that enable it to produce the goods or services that are sold to customers -Will not be used up within the next year -Divided into tangible and intangible 
Tangible assets -AKA fixed assets -Long-lived assets that have physical substance -Ex. Land, bu...
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Add to cartLong-lived assets -Resources owned by a business that enable it to produce the goods or services that are sold to customers -Will not be used up within the next year -Divided into tangible and intangible 
Tangible assets -AKA fixed assets -Long-lived assets that have physical substance -Ex. Land, bu...
Costs that aren't capitalized examples insurance, small dollar amounts, interest on loans, ordinary repairs/maintenance 
Depreciation on income statement is called depreciation expense 
Depreciation on balance sheet is called accumulated depreciation 
Depreciation effects on the acct equation Asset...
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Add to cartCosts that aren't capitalized examples insurance, small dollar amounts, interest on loans, ordinary repairs/maintenance 
Depreciation on income statement is called depreciation expense 
Depreciation on balance sheet is called accumulated depreciation 
Depreciation effects on the acct equation Asset...
When are liabilities created? When a company: -buys goods and services on credit -obtains short-term loans -Issued long-term debt 
what are current liabilities? short-term obligations that will be paid with current assets within the company's current operating cycle or within one year of the balanc...
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Add to cartWhen are liabilities created? When a company: -buys goods and services on credit -obtains short-term loans -Issued long-term debt 
what are current liabilities? short-term obligations that will be paid with current assets within the company's current operating cycle or within one year of the balanc...
basket purchase the total cost of a combined purchase of land and building, allocated in proportion to their relative market value 
depreciation a cost allocation process that matches costs of operational assets with periods benefited by their use 
depreciation expense depreciation for the current y...
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Add to cartbasket purchase the total cost of a combined purchase of land and building, allocated in proportion to their relative market value 
depreciation a cost allocation process that matches costs of operational assets with periods benefited by their use 
depreciation expense depreciation for the current y...
What does positive cash flow allow a company to do? 1. Pay dividends to its owners. 2. Replace worn assets. 3. Expand its operations. 4. Take advantage of new investment opportunities. 
Cash flow statement focuses on? 1. Firm's ability to generate cash internally 2. Its management of current assets...
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Add to cartWhat does positive cash flow allow a company to do? 1. Pay dividends to its owners. 2. Replace worn assets. 3. Expand its operations. 4. Take advantage of new investment opportunities. 
Cash flow statement focuses on? 1. Firm's ability to generate cash internally 2. Its management of current assets...
Purpose of Financial Reporting summarize transactions, give them to external/internal users, make decisions based on summaries 
Primary users of financial statements internal: executives, mid-level management External: investors, lenders, outside users 
Rules that govern accounting GAAP 
SEC Securit...
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Add to cartPurpose of Financial Reporting summarize transactions, give them to external/internal users, make decisions based on summaries 
Primary users of financial statements internal: executives, mid-level management External: investors, lenders, outside users 
Rules that govern accounting GAAP 
SEC Securit...
Comprehensive income is: not used to determine net income or earnings per share. 
Sales revenue less cost of goods sold is called: gross profit. 
The basic form of capital stock is: a share of common stock. 
On January 1, 2017, the Bonds Payable account has a balance of $690,000. On December 31, 201...
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Add to cartComprehensive income is: not used to determine net income or earnings per share. 
Sales revenue less cost of goods sold is called: gross profit. 
The basic form of capital stock is: a share of common stock. 
On January 1, 2017, the Bonds Payable account has a balance of $690,000. On December 31, 201...
Fraud An intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. 
Types of fraud Misappropriation of assets Fraudulent financial reporting 
Misappropriation of assets Committed by employees of an entity who ...
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Add to cartFraud An intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. 
Types of fraud Misappropriation of assets Fraudulent financial reporting 
Misappropriation of assets Committed by employees of an entity who ...
This type of accounting is mainly concerned with external reporting and reports are prepared using generally accepted accounting principles (GAAP). A)Tax accounting B)Financial accounting C)Managerial accounting D)Both financial accounting and managerial accounting B)Financial accounting 
Which of t...
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Add to cartThis type of accounting is mainly concerned with external reporting and reports are prepared using generally accepted accounting principles (GAAP). A)Tax accounting B)Financial accounting C)Managerial accounting D)Both financial accounting and managerial accounting B)Financial accounting 
Which of t...
Pros and Cons of Extending Credit Advantage: 1. Increases the seller's revenues 
Disadvantages: 1. increase wage cost 2. bad debt cost 3. delayed receipt of cash 
Journal entry at time of sale (record sales on account) debit accounts receivables and credit sales revenues 
Journal entry to record es...
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Add to cartPros and Cons of Extending Credit Advantage: 1. Increases the seller's revenues 
Disadvantages: 1. increase wage cost 2. bad debt cost 3. delayed receipt of cash 
Journal entry at time of sale (record sales on account) debit accounts receivables and credit sales revenues 
Journal entry to record es...
Under the accrual basis of accounting events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. 
Under accrual- adjusting is made when? at the end of the accounting period 
Under accrual- adjusting is mad...
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Add to cartUnder the accrual basis of accounting events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. 
Under accrual- adjusting is made when? at the end of the accounting period 
Under accrual- adjusting is mad...
What are the two ways businesses finance the acquisition of their assets? 1. Funds supplied by creditors (debt - liability) 
2. Funds provided by owners (equity) 
What is the term given to a mixture of debt and equity a business uses? Capital structure 
Two key factors managers consider when borrowi...
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Add to cartWhat are the two ways businesses finance the acquisition of their assets? 1. Funds supplied by creditors (debt - liability) 
2. Funds provided by owners (equity) 
What is the term given to a mixture of debt and equity a business uses? Capital structure 
Two key factors managers consider when borrowi...
State the 3 types of accounting Financial Accounting - information for external decision makers Managerial Accounting - information for internal decision makers Tax Accounting - information for the tax authorities 
Accounting matters why? If a company's revenue beats their projected, it will raise ...
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Add to cartState the 3 types of accounting Financial Accounting - information for external decision makers Managerial Accounting - information for internal decision makers Tax Accounting - information for the tax authorities 
Accounting matters why? If a company's revenue beats their projected, it will raise ...
If you purchase a building for $530,000, under the historical cost principal, you should record the building for: $530,000 
Which of the following is a true statement about International Financial Reporting Standards They are converging gradually with U.S. standards 
What does GAAP mean? Generally A...
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Add to cartIf you purchase a building for $530,000, under the historical cost principal, you should record the building for: $530,000 
Which of the following is a true statement about International Financial Reporting Standards They are converging gradually with U.S. standards 
What does GAAP mean? Generally A...
Each of the following is one of the four basic financial statements except what? a. income statement b. statement of cash flows c. statement of stockholders' equity d. balance sheet e. bank statement e. bank statement 
All of the following items are classified on the income statement as a revenue e...
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Add to cartEach of the following is one of the four basic financial statements except what? a. income statement b. statement of cash flows c. statement of stockholders' equity d. balance sheet e. bank statement e. bank statement 
All of the following items are classified on the income statement as a revenue e...
Company held investments in trading securities with a fair value of $70,000 at December. These investments cost $60,000 in January. What is the amount to report on the balance sheet in December? $70,000 
Trading securities with a fair value of $55,000 at December. These investments cost $45,000 on J...
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Add to cartCompany held investments in trading securities with a fair value of $70,000 at December. These investments cost $60,000 in January. What is the amount to report on the balance sheet in December? $70,000 
Trading securities with a fair value of $55,000 at December. These investments cost $45,000 on J...
Smatter Corporation purchased land for a new building. Which of the following costs would not be included in the cost of the land? Cost of new parking lot constructed on the land 
Chanit Company purchased a building and land for $540,000 in total. Individually, the land appraised for $228,000 and th...
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Add to cartSmatter Corporation purchased land for a new building. Which of the following costs would not be included in the cost of the land? Cost of new parking lot constructed on the land 
Chanit Company purchased a building and land for $540,000 in total. Individually, the land appraised for $228,000 and th...
Accounting can either be based on what 2 types of accounting? 1. Accrual Accounting 2. Cash-Basis Accounting 
Accrual Accounting -Records what (2)? -Required by what? Accounting that records the impact of a business event as it occurs, regardless or whether the transaction affected cash. -Making the...
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Add to cartAccounting can either be based on what 2 types of accounting? 1. Accrual Accounting 2. Cash-Basis Accounting 
Accrual Accounting -Records what (2)? -Required by what? Accounting that records the impact of a business event as it occurs, regardless or whether the transaction affected cash. -Making the...
If goods in transit are shipped FOB destination A. no one has legal title to the goods until they are delivered. 
B. the transportation company has legal title to the goods while the goods are in transit. C. the seller has legal title to the goods until they are delivered. D. the buyer has legal tit...
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Add to cartIf goods in transit are shipped FOB destination A. no one has legal title to the goods until they are delivered. 
B. the transportation company has legal title to the goods while the goods are in transit. C. the seller has legal title to the goods until they are delivered. D. the buyer has legal tit...
Accounting - Language used to communicate financial information about economic entities - The language used to tell a story - This must be done ethically and accurately because many people are interested in this information 
External Users - Competitors: There are limitations on the information that...
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Add to cartAccounting - Language used to communicate financial information about economic entities - The language used to tell a story - This must be done ethically and accurately because many people are interested in this information 
External Users - Competitors: There are limitations on the information that...
Cash basis accounting accounting method that records revenue only when cash is received and expenses only when cash is paid 
Accrual basis accounting accounting method that records revenues when earned and expenses when incurred 
Time period concept assumes that a business's activities can be slice...
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Add to cartCash basis accounting accounting method that records revenue only when cash is received and expenses only when cash is paid 
Accrual basis accounting accounting method that records revenues when earned and expenses when incurred 
Time period concept assumes that a business's activities can be slice...
Depreciation -Land is only plant asset on deprecated(unlimited useful life) -allocation of land asset's cost to expense over its life -Supports matching principle 
Measuring the cost of a Plant Asset Sum of all costs incurred to bring the asset to its intended use 
Cost of a plant asset: Equipment ...
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Add to cartDepreciation -Land is only plant asset on deprecated(unlimited useful life) -allocation of land asset's cost to expense over its life -Supports matching principle 
Measuring the cost of a Plant Asset Sum of all costs incurred to bring the asset to its intended use 
Cost of a plant asset: Equipment ...
The purpose of adjusting entries is to (1) update amounts already recorded in the accounting records and (2) include events that occurred but had not yet been recorded. 
When a company pays its rent in advance its recorded as an asset is reported on the balance sheet 
As a company uses supplies, an ...
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Add to cartThe purpose of adjusting entries is to (1) update amounts already recorded in the accounting records and (2) include events that occurred but had not yet been recorded. 
When a company pays its rent in advance its recorded as an asset is reported on the balance sheet 
As a company uses supplies, an ...
The journal entry to record the factoring of receivables would include a debit to cash, debit to financing expense, and credit to accounts receivable 
When computing the quick ratio, the numerator will include all of the following except for inventory 
A business offers credit terms of 2/15, n/30. T...
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Add to cartThe journal entry to record the factoring of receivables would include a debit to cash, debit to financing expense, and credit to accounts receivable 
When computing the quick ratio, the numerator will include all of the following except for inventory 
A business offers credit terms of 2/15, n/30. T...
The quality of earnings suggests that a. stockholders want the corporation to earn enough income to be able to pay its debts. b. continuing operations and one-time transactions are of equal importance. c. net income is the best measure of the results of operations. d. income from continuing operatio...
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Add to cartThe quality of earnings suggests that a. stockholders want the corporation to earn enough income to be able to pay its debts. b. continuing operations and one-time transactions are of equal importance. c. net income is the best measure of the results of operations. d. income from continuing operatio...
An organization's investors and creditors will primarily use information provided by: 
a. the organization's financial accounting system. b. the organization's managerial accounting system. c. the Internal Revenue Service. d. the Financial Accounting Standards Board a. the organization's financi...
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Add to cartAn organization's investors and creditors will primarily use information provided by: 
a. the organization's financial accounting system. b. the organization's managerial accounting system. c. the Internal Revenue Service. d. the Financial Accounting Standards Board a. the organization's financi...
Accounting cycle Transactions--> journal entry in general journal--> post journal in general ledger-->prepare trial balance entry--> prepare income statement and balance sheet 
Accounting equation (3 ways) Assets = Liabilities + Owner's Equity Assets = Liabilities + Owner's Equity + Ne...
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Add to cartAccounting cycle Transactions--> journal entry in general journal--> post journal in general ledger-->prepare trial balance entry--> prepare income statement and balance sheet 
Accounting equation (3 ways) Assets = Liabilities + Owner's Equity Assets = Liabilities + Owner's Equity + Ne...
The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n): a. Accounts Payable b. Accounts Receivable c. Revenue d. Expense a. Accounts Payable 
Which of the following is NOT one of the three forms of business organizations? a. Corpora...
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Add to cartThe liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n): a. Accounts Payable b. Accounts Receivable c. Revenue d. Expense a. Accounts Payable 
Which of the following is NOT one of the three forms of business organizations? a. Corpora...
What are financial statements? business documents companies use to report the results of their activities to people and groups 
Basic financial statements income statement, statement of retained earnings, balance sheet, statement of cash flows 
What does the word net refer to in accounting an amount...
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Add to cartWhat are financial statements? business documents companies use to report the results of their activities to people and groups 
Basic financial statements income statement, statement of retained earnings, balance sheet, statement of cash flows 
What does the word net refer to in accounting an amount...
Suppose you are starting a medical data analytics firm. Which form of business will limit your liability for the business to the amount you have invested? Corporation 
The primary objective of financial reporting is to provide information useful for making investment and credit decisions. 
Which typ...
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Add to cartSuppose you are starting a medical data analytics firm. Which form of business will limit your liability for the business to the amount you have invested? Corporation 
The primary objective of financial reporting is to provide information useful for making investment and credit decisions. 
Which typ...
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