Contra revenue - Study guides, Class notes & Summaries

Wall Street Prep The Premium Package Review: Accounting & Financial Statement Analysis Exam Latest 2023/2024 Questions and Answers (Score: 95%, 38 correct out of 40). Score: 95%, 38 correct out of 40 Question 1 Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $7 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wage...

ACCTMIS 2200 Exam 2 Questions and answers, Graded A+ Accounting for the sale of our product, what financial statements are affected? - -Sales Revenue Cost of Goods Sold Accounts Receivable Inventory Realization Principle - -Revenue is realized when services are rendered to customers or when goods sold are delivered to customers, not when cash is collected. Accrued revenue is recorded as an Accounts Receivable when services occur before cash Sales Revenue - -revenue earned from selling...

AccountA record summarizing all the information pertaining to a certain item in the accounting equation Account ClassificationGroups of accounts including assets, liabilities, owner equity, expense, and revenue AssetAnything of value to an individual or business (What you own) LiabilityAmount of money owed by an individual or business (What you owe) Drawing AccountA contra account, meaning the balance in the account goes against the balance in the capital account

MGT 8803 Midterm Exam Questions with Correct Answers Cash - Answer-Asset* BS Deferred Revenue - Answer-Liability* BS Treasury Stock - Answer-Contra-Equity BS Cost of Goods Sold - Answer-Expense IS Interest Expense - Answer-Expense IS Sales - Answer-Revenues IS Sales Discounts - Answer-Contra-Revenue IS Sales Returns - Answer-Contra-Revenue IS Discounts of Bonds Payable - Answer-Contra-Liability BS Inventory - Answer-Asset* BS Wages Payable - Answer-Liability* BS...

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During the year Kincaid reported $72,500 of credit sales. Kincaid wrote off $550 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts will: not...

Recognition - ANS The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like Historical Cost - ANS The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets Current value - ANS The amount of cash or its equivalent that could be received by selling an asset currently Cash basis - ANS A system of accounting in which revenues are recognized when ...

Accounting Cycle correct answers The sequence of steps in the accounting process completed during the final fiscal period Accrual correct answers Recognition of an expense or a revenue that has been incurred or earned but has not yet been recorded Accrued wages correct answers Unpaid wages owed to employees for the time between the end of the last pay period and the end of the fiscal period Adjusting entries correct answers Entries that bring the books up to date at the end of the fisca...

Wall Street Prep Updated Exam 2023 | Premium Package Review | Accounting & Financial Statement Analysis Exam Question 1 Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $7 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018. Any earned but unpaid wages will be paid during the first quarter of 2019....

Digger Enterprises purchased equipment for $64,000. In addition, shipping charges of $800 were incurred to obtain the equipment. The company paid $5,000 to construct a foundation and install the equipment. The equipment is estimated to have a residual value of $6,000 at the end of its 5-year useful life. Using the straight-line method, what is the book value of the equipment at the end of the third full year of use? a. $22,120 b. $28,400 c. $31,520 d. $25,520 C. $31,520 Zebra Inc. bu...

When a company provides services on account, which of the following accounts is debited? correct answers accounts receivable The amount of cash owed to the company by its customers from the sale of products or services on account is known as: correct answers accounts receivable A sales discount is recorded by the seller as a(n): correct answers contra revenue On January 18, a company provides services to a customer for $500 and offers the customer terms 2/10, n/30. Which of the followin...