Liabilties - Study guides, Study notes & Summaries

ACT1006 Summarised Study Notes Chapter 1 : Introduction to Accounting 1.1 Accounting the Language of Business o The Aim of Accounting is to provide reliable and relvent financial information for decision makers o Accounting Process o Identify o Measure o Record o Communicate 1.2 Forms of Ownership o Sole Proprietor : Full responsibility, Limited resources o Partnership: join forces with others, unlimited lability o Company : Limited Liability, more responsibility 1.3 Introduction ...

Payroll Fundamentals 2 Exam 150 Questions with Verified Answers The accounting equation states: - CORRECT ANSWER Assets = Liabilities + Owners Equity Owner's Equity has two components: - CORRECT ANSWER Owner's Equity = Contributed Capital + Retained Earnings Contributed Capital - CORRECT ANSWER The amount of payments in cash or assets that the owners have made to the company The accounting equation can be expanded to: - CORRECT ANSWER Assets = Liabilties + Contributed Capital + Ret...

BFIN 300 Study Questions with Correct Answers A broker is an agent who: - Answer-brings buyers and sellers together Capital Budgeting - Answer-process of planning and managing a firms long-term investments Capital budget - Answer-dedication of business opportunities that are worth more to the business than what they cost to aquire Corporate finance seeks to answer - Answer-how will your decisions affect capital budgeting, working capital and capital structures Corporations face - An...

Financial Accounting Terms in this set (162) Financial Accounting Financial Accounting The accounting equation for Quattro Enterprises is as follows: Assets Liabilities Stockholders' Equity $120,000 = $60,000 + $60,000 If Quattro purchases office equipment on account for $25,000, the accounting equation will change to Assets Liabilties Stockholders' Equity a. $120,000 = $60,000 + $60,000 b. $145,000 = $60,000 + $85,000 c. $145,000 = $72,500 + $72,...

GAAP (Generally Accepted Accounting Principles) - correct answer Various rules and regulations which limited companies are required to observe. These are established national accounting procedures. Main components are normally accounting standards (IFRS), National company law (e.g. Companies Act 2006 in the UK), Stock exchange requirements. Accounting standards (Organisation vs Standards) - correct answer International Accounting Standards Committee (IASC) - International Accounting...

The accounting equation states: - Assets = Liabilities + Owners Equity Owner's Equity has two components: - Owner's Equity = Contributed Capital + Retained Earnings Contributed Capital - The amount of payments in cash or assets that the owners have made to the company The accounting equation can be expanded to: - Assets = Liabilties + Contributed Capital + Retained Earnings The 5 different accounts of a typical for-profit organization - - asset accounts - liability accounts - revenue a...

accrued liabilties - expenses recorded but not yet paid (ex: income tax) accrued payroll - Amount earned by employees but not yet paid to them. This is a liability. book value - cost - accumulated depreciation callable bond - may be called for early retirement at the option of the issuer capital expenditures - spending to purchase long lived tangible assets capitalize - record an expenditure as an asset carrying value - bonds payable plus the premium or less the discount on bonds payable ...

BFIN 300 STUDY QUESTIONS WITH CORRECT ANSWERS GRADED A+ long term debt ratio - Answer-long term debt / (long term debt + total assets) Times interest earned - Answer-EBIT/ interest expense Cash coverage ratio - Answer-(EBIT + Depreciation) / Interest debt/equity ratio - Answer-total liability/shareholders equity Current Ratio/NWC ratio - Answer-current assets/current liabilties quick ratio - Answer-(Current Assets - Inventory) / Current Liabilities Cash ratio - Answer-Cash / Cu...

This document, will let you see accounting in a different light. It will explain the basics thoroughly and show you how to apply the basics to complex problems. Sometimes out teachers and tutors innocently skip over the basics , which causes problems in more complex accountancy. This is basically Accounting for Dummies.

Accounts Receivable - Answer- The amount of money owed by customers or clients to a business after goods or services have been delivered and/or used. Accounts Payable - Answer- The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered. Assets - Answer- Those that will be converted to cash within one year. Typically, this could be cash, inventory or accounts receivable. Fixed assets (FA) are long-term and will likely provide benef...