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Merchandise inventory correct answers Goods a company intends to sell. LIFO (last in, first out) correct answers Assumes last items purchased are the first sold. FIFO (First In, First Out): correct answers Assumes first items purchased are the first sold. (Chronological) Specific Identifica...

Accounting is the language of ________ correct answers business a system of maintaining records of a company's operations and communicating that information to decision makers correct answers accounting these people decide whether to invest in stock correct answers investors these people d...

What iis accounting? correct answers An information and measurement system that identifies, records, and communicates information about business information. Also known as the language of business 3 parts of accounting correct answers Identifying: select transactions and events Recording: input,...

Inventories Effect correct answers both the balance sheet and the income statement Legal Title correct answers The factor which determines wether or not goods should be included in a physical count of inventory is If goods in transit are shipped FOB destination correct answers the seller has l...

1. Mannix Company issued $1,000,000 of 5%, 5-year bonds at 98. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date? correct answers $54,000 2. Mannix Company issued $1,000,000 of 5%, 5-year bonds at 105. Assuming s...

What is an information system that provides reports to users regarding economic activities and condition of a business> correct answers accounting All of the following are general-purpose financial statements except: a. balance sheet b. retained earnings statement c. cash budget d. income ...

What is Bad Debt Expense? correct answers Bad Debt Expense is when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. How do you calculate bad debt expense using the percent of sa...

What side does assets increase on? correct answers Debit What side does liabilities increase on? correct answers Credit What side does owners equity increase on? correct answers Credit What side does paid in capital increase on? correct answers Credit What side does Retained earnings inc...

Closing Entries correct answers Dr. Revenue Cr. Expenses (Dr. RE if net loss, Cr. RE if net income) Dr. R.E Cr. Dividends debit correct answers "what you get" credit correct answers "how you get it/ what was used up" Adjusting Entries correct answers Revenue or Expense Dr. unearne...

4 primary financial statements correct answers Income statement --> Fees Earned - Expenses = net income RES = Uses net income, minus dividends, gives RE Balance Sheet --> A = L + SE, uses RE, gives cash SOCF --> Uses cash, gives net cash flow 3 forms of businesses and business organiz...

Internal users correct answers people inside and entity (managers, supervisors etc), internal users focus more on management accounting External users correct answers People outside the entity who are still interested in info regarding the entity (employees, shareholders, suppliers, banks etc), e...

Accounting is an information and measurement system that does all of the following except Identifies business activities Records business activities Communicates business activities Eliminates the need for interpreting financial data Helps people make better decisions correct ans...

A correct answers QN=1 Merchandise inventory includes: a. All goods owned by a company and held for sale. b. All goods in transit. c. All goods on consignment. d. Only damaged goods. e. All goods in the stores of company. E correct answers QN=2 Costs included in the Merchandise Inventor...

An adjusting entries for unearned revenue affects correct answers Revenue and Liabilities How will it affect total Assets in the balance sheet if tangible fixed assets are not depreciated at the end of the period? correct answers Total Assets are overstated How will it affect Income Statement ...