ACCT 2102 Questions and Answers | Latest Version | 2024/2025 | 100% Verified
7 views 0 purchase
Course
ACCT 2102
Institution
ACCT 2102
ACCT 2102 Questions and Answers |
Latest Version | 2024/2025 | 100%
Verified
What is the definition of a contingent liability?
A contingent liability is a potential obligation that may arise depending on the outcome of a
future event, such as a lawsuit.
Explain the term "capital expend...
ACCT 2102 Questions and Answers |
Latest Version | 2024/2025 | 100%
Verified
What is the definition of a contingent liability?
✔✔ A contingent liability is a potential obligation that may arise depending on the outcome of a
future event, such as a lawsuit.
Explain the term "capital expenditures."
✔✔ Capital expenditures are funds used by a company to acquire or upgrade physical assets
such as property, buildings, or equipment.
What is an operating cycle?
✔✔ An operating cycle is the time it takes for a company to purchase inventory, sell it, and
collect cash from customers.
Define "inventory turnover ratio."
✔✔ The inventory turnover ratio measures how many times a company's inventory is sold and
replaced over a period.
1
,What is the purpose of a bank reconciliation?
✔✔ A bank reconciliation is used to ensure that the company’s records (book balance) match the
bank’s records, identifying any discrepancies.
What does "amortization" refer to in accounting?
✔✔ Amortization refers to the gradual reduction of an intangible asset’s value over time, similar
to depreciation for tangible assets.
What is a classified balance sheet?
✔✔ A classified balance sheet organizes assets and liabilities into current and non-current
categories, providing a clearer financial picture.
Explain "net income."
✔✔ Net income is the total profit of a company after all expenses, taxes, and costs have been
subtracted from total revenue.
What is the difference between cash basis and accrual basis accounting?
✔✔ Cash basis accounting recognizes revenue and expenses only when cash is exchanged, while
accrual basis accounting recognizes them when earned or incurred.
2
, What is a petty cash fund?
✔✔ A petty cash fund is a small amount of cash kept on hand for minor expenses, with detailed
records maintained for accountability.
Define "pro forma financial statements."
✔✔ Pro forma financial statements are projections based on hypothetical scenarios, often used
for planning and forecasting.
What is the difference between a primary and a secondary market?
✔✔ The primary market is where new securities are issued and sold for the first time, while the
secondary market is where existing securities are traded.
Explain the term "owner’s equity."
✔✔ Owner’s equity represents the owner’s claim on the assets of a business after all liabilities
have been deducted.
What is a financial audit?
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.73. You're not tied to anything after your purchase.
