ACC 201 Test- Study Terms and Questions 100% Correctly Answered
1 view 0 purchase
Course
ACC 201
Institution
ACC 201
Short-term Investment - Answer Are securities held by a company that are readily
marketable and intended to be converted into cash within the next year or operatin
cycle, whichever is longer
Readily Marketable - Answer An investment is readily marketable when it can be sold
easily whenever the ...
ACC 201 Test- Study Terms and Questions 100%
Correctly Answered
Short-term Investment - Answer Are securities held by a company that are readily
marketable and intended to be converted into cash within the next year or operatin
cycle, whichever is longer
Readily Marketable - Answer An investment is readily marketable when it can be sold
easily whenever the need for cash arises
Management's Intent to Convert - Answer Management intends to sell the investment
within the next year or operating cycle, whichever is longer
Long-term Investment - Answer - investments in stocks and bonds that are held for
more than one year
- long term assets (land, buildings) that a company isn't currently using in its operating
activities
- long-term notes recievable
Accumulated Depreciation - Answer Shows the total amount of depreciation that the
company has expensed thus far in the asset's life
Intangible Assets - Answer Assets that do not have phsyical substance and often are very
valuable
Example: goodwill, patents, copyrights, trademarks
, Current Liabilities - Answer Obligation that is due within one year or operating cycle,
whichever is longer. And is settled by the use of a current asset providing a sales or
service or creation of another liability
Long-term Liabilities - Answer Obligations that a company expects to pay after one year
Historical Cost Principle - Answer Assets are recorded and reported at original purchase
price
Fair Value Principle - Answer The price recieved to sell an asset or settle a liability
Property, Plant and Equipment accounts are reported on the balance sheet as
_____________________. - Answer Historical Cost
What do earnings per share measure? - Answer - Measures the net income earned on
each share of common stock.
- Only required to be presented by a publicly traded company.
- Must be shown on the bottom of the income statement.
(Net Income - Preferred Dividends)/ Average Common Shares Outstanding
Solvency - Answer Companies ability to pay interest or debt. The higher it gets, the
riskier.
Working Capital - Answer Current Assets - Current Liabilities
- Don't compare to other companies.
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 Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
