Acctg 5110 - Study guides, Class notes & Summaries

What is the downside of using accrual accounting versus cash-basis accounting discussed in the lecture? -Accrual accounting provides poorer information about past performance. -Accrual accounting is less predictive in terms of future performance than cash-basis accounting. -Accrual accounting is more subjective than cash-basis accounting, which may lead to manipulation. -Accrual accounting and cash-basis accounting report the same values over the life of the firm. - ANSAccrual accounting...

Nina Corp. had the following net income (loss) the first three years of operation: $7,200, ($1,000), and $2,400. If the Retained Earnings balance at the end of year three is $500, what was the total amount of dividends paid over these three years? - ANS$8,100 (7200-1000+2400-500) Use the following appropriate amounts to calculate net income: Revenues, $11,300; Liabilities, $4,800; Expenses, $4,100; Assets, $17,400; Dividends, $1,700. - ANSNet Income = Revenues ($11,300) − Expenses ($4,100...

Billings on Construction in Progress - ANS- increases with credit - found on BS Prepaid Expenses - ANS- increases with debit - found on BS Allowance for Doubtful Accounts - ANS- increases with credit - found on BS Gain on Sale of Land - ANS- increases with credit - found on CIS Deferred Rent Revenue - ANS- increases with credit - found in BS

Question 1-1 How should cumulative preferred dividends in arrears be shown in a corporation's balance sheet? 1. Increase in stockholders' equity 2. Increase in current liabilities 3. Increase in current liabilities for the amount expected to be declared within the year or operating cycle, and increase in long-term liabilities for the balance 4. Note disclosure - ANSNote disclosure Question 1-2 A mining company declared a liquidating dividend. The journal entry to record the de...