Exam (elaborations)
Test bank for survey of accounting, 7th edition by thomas edmonds new
- Course
- Accounting
- Institution
- Accounting
Test bank for survey of accounting, 7th edition by thomas edmonds new 2024
[Show more]
Content preview
Survey of Accounting Exam 1 20241. Current Assets: Used w/n a year. When used it becomes an expense.
E.g. Cash, Accounts Recievable, Supplies, Inventory, Prepaid Insurance
2. Fixed Assets: More permanent. Each fixed asset (except for land) has an
Accumulated Depreciation account which is a Contra-asset. Cash flow going
into it, is an Investment.
E.g. Equipment, land, building
3. Current Liabilities: Paid w/n a year
E.g. Accounts payable, Wages payable, unearned revenue.
4. Long-term Liabilities: Paid over a longer period of time than Current
Liabilities. Think longer than a year. Usually has interest. Cash flow involving
LT Liabilities is Financing.
E.g. Notes Payable, Mortgage
5. Equity: Ownership of a company. Cash flow that has to do with Stock or
Dividends is Financing.
E.g. Common/Capital stock, Retained Earnings
6. Formula for Balance Sheet: Assets = Liabilities + Owned Equity
7. Fees Earned: Revenue Account for Operating a Service Business
8. Sales Revenue: Revenue Account for Operating a Merchandise Business
9. Sales Discounts: Contra revenue account. Measured by credit terms. (n/30)
= Amount must be paid in full in 30 days. Sometimes there is also discount for
early payment (3/10) = 3% discount if paid in 10 days.
10. Sales Returns and Allowances: Contra revenue account. Accounts for
situations where the inventory is returned to the business.
11. Cost of Merchandise/Goods Sold: Expense account. Amount of inventory
you lost when it is sold. Subtract this from net sales amount to calculate gross
profit.
12. Insurance Expense: Expense Account. Created when the Prepaid Insurance
Asset is used up.
13. Supplies Expense: Expense Account. Created when the Supplies are used
up.
14. Wage Expense: Expense Account. Created when employees must be paid.
15. Depreciation Expense: Expense Account. Created when fixed assets
become used up.
16. Net Sales: Calculated by Subtracting Sales Discounts and Sales Returns and
Allowances from Sales Revenue Account.
1/3
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 KINGNOTES1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79064 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now