Term
Which of the following is considered a user of accountin information?
a. Employees/Managers
b. Customers and Suppliers
c. Government
d. all are correct |
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Definition
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Term
A ___ sells products purchased from othehr buisnesses to make their objective of maximizing their profits.
a. mercchandising buisness
b. manufacturing buisness
c. enterprise business
d. service buisness |
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Definition
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Term
| Finanncial accounting is best defined as... |
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Definition
| the recording and reporting of economic data and activities of a business |
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Term
| The principles and concepts that the management of a company uses to record and report its financial information is called... |
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Definition
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Term
| The buisness entity concept is importannt because... |
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Definition
| it limits economic data in the accounting system to be directly related to the activities of the buiness |
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Term
| On April 1, garden apple company offered to pay $13,000 for equipment that was advertised as being solf ffor $19,00 by the farm outlet company. the equipmet had a retail value of $23,000 on tha day. On Aprril 10, farm outlet agreed o sell the equipment for $14,700. What value will garden apple record tthe equipmen in he books? |
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Definition
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Term
| Which best represents the accounting equations |
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Definition
| assets + liabilities = owner's equity |
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Term
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Definition
| the resources owned by the business |
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Term
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Definition
| resorces owned by creditors |
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Term
| Java Beens compny purchased a new building in the amount of $150,000. Java beans has paid $50,000 and will pay the remainder in 5 years. what ecfect does this trasaction have on the accounting equation? |
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Definition
| $100,000 increase in assets and $100,000 increase iin liabilities |
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Term
| java beans company recorded $5,000 in sales on account for the week. wht effect does thhis transaction hace onthe acconting equation? |
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Definition
| $5,000 increase in assets and $5,00 increase in stockholders equity |
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Term
| java beans company purchased $2,500 of prepaid isurance with cash. what effect dos this transactin hace o the accounting equation? |
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Definition
| no effect to the accounting equation |
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Term
| the statement that reports the financial position of the company for a certain day in time is the... |
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Definition
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Term
| included in the reatained earnings statement are... |
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Definition
| net income (loss) and dividends |
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Term
Which of the following statements provide a summary as of a specific period of time rather than as of a specific date?
a. all of the answer choices are correct
b. income statement
c. retained earnings statement
d. statement of cash flows |
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Definition
| all of the answer choices are correct |
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Term
| who is considered to be internal users of accouning information |
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Definition
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Term
| A ___ changes basic inputs into products and sells thm to individual customers |
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Definition
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Term
| This is not accurate when it pertains to managerial accounting |
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Definition
| primarily provides relevant and timely unformation for the decision_making needs of users outside of the buisness |
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Term
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Definition
| GAAP is a standard set of principles which allows the company to choose the format of their finacncial statements |
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Term
| the business entityy concept is important because... |
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Definition
| it limits economic data in he acconting system to be directly related to the activties o the buisness |
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Term
| on april 1 garden apple company offered to pay $15,000 for equipment that was advertised as being solf for $18,000 by the farm outlet company. the equipment had a retail value of $20,000 on that day. on april 10, farm outlet agreed to sell the equipment for $16,500. what value will garden apple record the equipment on in the books? |
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Definition
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Term
|
Definition
| assets - liabilities = owner's equity |
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Term
| owner's equity can best be defined as... |
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Definition
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Term
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Definition
| resources owned by the business |
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Term
| java beans comapny purchased a new coffee maker in the amount of $3,500. java beans has paid $1,000 and will pay the remainder in 60 days. what effect does this transaction have on the accounting equation |
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Definition
| $2,500 increase in assets and $2,500 increase in liabilities |
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Term
| java beans company recorded $1,200 in sales for the week. what effect does this transaction have on the accounting equation? |
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Definition
| $1,200 increase in assets and $1,200 increase in stockholders equity |
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Term
| java beans comapny purchased $500 of supplies with cash. what effect does this transaction have on the accounting equation |
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Definition
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Term
| the statement that reports net income or loss for a certain period in time is the... |
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Definition
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Term
| included in the balance sheet... |
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Definition
| assets, liabilities, and stockholders equity accounts |
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Term
| which statement only reports as of a specific date |
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Definition
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Term
| right hand side of the T-account is called... |
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Definition
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Term
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Definition
| list of the accounts in the ledger |
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Term
Accounts receivable T-Account on Oct 31
Oct1 20,000 b) 23,000
a)
18,000
What is the ending balance of this account on Oct 31? |
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Definition
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Term
| the journal entry on september 12 for fees earned on account for $13,500 would be recorded as follows... |
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Definition
Accounts Receivable 13,500
fees earned 13,500 |
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Term
| normal balance of asset account is... |
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Definition
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Term
| when a transaction is journalized, which account is listed first |
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Definition
| the account to be debited |
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Term
| the process of transferring the debits and credits from the journal entries to the accounts is called... |
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Definition
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Term
| flors company receibed $4,000 for fees earned from customers, that was not previously recorded. what is the correct journal entry |
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Definition
cash 4,000
fees earned 4,000 |
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Term
| flors company paid clark company $4,200 for a debt owed from previous transaction. what is the correct journal entry |
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Definition
accounts payable 4,200
cash 4,200 |
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Term
| trail balance is used at the end of the accounting period |
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Definition
| to determine the equality of the debits and credits |
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Term
| trial balance will include |
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Definition
| the ending balance of each account |
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Term
| not result in the trail balance being unequal |
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Definition
| a debit of $400 was incorrectly posted to the supplies account instead of the supplies expense account |
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Term
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Definition
| has 3 parts: the left side, the right side, and the title |
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Term
ending balance of the following account
accounts payable
pay 1,877 beg bal 4,355
purch 1,345 |
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Definition
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Term
| resources owned by the buisness entity are called... |
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Definition
|
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Term
|
Definition
| is to record the initial entry of a transaction which includes the debit and credit accounts with a description of the entry |
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Term
| journal entry on may 13 for purchasing supplies on account for $560 would be recorded as follows... |
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Definition
supplies 560
accounts payable 560 |
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Term
June 7 Cash 6,700
?????????????????????? 6,700
received fees for services performed for customers |
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Definition
|
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Term
| transferring debits and credits from the journal to the corresponding accounts is called... |
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Definition
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Term
| flors company received $800 for fees earned from customers, that had not previously been recorded. Correct journal entry? |
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Definition
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Term
| flors compnay paid clark company 1,200 for a debt owed from a previous transaction. correct journal entry? |
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Definition
accounts payable 1,200
cash 1,200 |
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Term
| style compnat is wanting to verify that all of their accounts are in balance. what should they use? |
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Definition
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Term
| not an error that would cause the trail balance to become unequal |
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Definition
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Term
| all adjustin entries affect |
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Definition
| at least one income statement account and one balance sheet account |
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Term
| which account will normally require an adjustin entry |
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Definition
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Term
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Definition
| revenues that hace been earned but hace not been paid or recorded in the books |
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Term
if the following adjusting entry was omitted, what affect would it hace on income?
depreciation expense 1,600
accumulated depreciation 1,600 |
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Definition
| income would be overstated by 1,600 |
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Term
| if an adjustment for 5,000 in earned revenue were to be omitted, how would this affect the financial information? |
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Definition
| income would be understatedby 5,000 |
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Term
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Definition
| updates at least one income statement account and one balance sheet account at the end of an accounting period |
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Term
| purpose of the adjusted trail balance is to.... |
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Definition
| verify the equality of the total debit balances and the total credit balances after adjustments have been recorded |
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Term
| an adjustment to record unrecorded fees earned was posted during the current period. what would cause the trail balance to go out of balance |
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Definition
| the adjustment was posted as a debit to accounts receivable for $540 and credit to fees earned for $5,400 |
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Term
| once the adjusted trial balance is balanced, it can be used to prepare |
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Definition
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Term
| which account will never require an adjustin entry |
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Definition
|
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Term
|
Definition
| expenses that have been incurred but have not been paid or recorded in the books |
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Term
| not true about accrual basis accounting |
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Definition
| revenues and expenses are reported in the period in which cash is received |
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Term
| 6,600 debit balance in koko company prepaid insurance account represents 6 months of insurance. what should be included in the adjusting journal entry to expense one month's worth of insurance |
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Definition
| debit--insurance expense $1,100 |
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Term
| daisy company determines that $8,700 of fees earned on march 31 have not been recorded. type of transaction to be adjusted? |
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Definition
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|
Term
| accumulated depreciation account is called... |
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Definition
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Term
following adjusting entry were omitted, what affect would it hace on income?
accounts receivable 3,400
fees earned 3,400 |
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Definition
income would be understated by 3,400 |
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Term
| if an adjustment for salaries worked but not recorded in the amount of $85,000 were to be omitted, how would this affect the financial information? |
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Definition
| liabilities would be understatedby $85,000 |
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Term
if an adjusting entry for depreciation expense were as follows, what would the affect be on the financial statements
accumulated depreciation 23,000
depreciation expense 23,000 |
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Definition
| assets would be overstated |
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Term
| which account would appear on an adjusted trail balance but probably would not appear on the trail balance |
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Definition
|
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Term
| adjusted trial balance is prepared |
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Definition
| to determine whether the debits are equal to the credits after entries are recorded |
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Term
| if the adjusted trail balance is found to be out of balance, what is the next step that should be taken |
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Definition
| find and correct the error that have caused the adjusted trial balance to be out of balance |
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Term
| flow of accounting information |
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Definition
| is from the unadjusted trail balance to the adjusted trail balance to the income statement and balance sheet columns |
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Term
| once the accounting information is extended to the icome statement and balance sheet columns of the worksheet |
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Definition
| the difference between the debits and the credits in the income statement columns will be ewual to the difference between the debits and credits in the balance sheet |
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Term
| once the adjusted trial balance is extended to the income statement section and to the balance sheet section, if the debit column of the income statement is lower than the credit column |
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Definition
| the difference will be reported as a net income |
|
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Term
| the order of the expenses listed in the income statement is done by |
|
Definition
| listing the expenses in order of size, beginning with the larger items and the miscellaneous expense as the last item |
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Term
retained earnings, jan 1, 2010 13,568
net income, 2010 ?????
less dividends 5,000
change in retained earnings ??????
retained earnings, dec 31,2010 18,905 |
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Definition
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Term
| The classified balance sheet will include subsections that are not included in a regular balance sheet. what is found on the classified balance sheet |
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Definition
| current assets, long-term liabilities, property, plant, and equipment |
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Term
fees earned 18,944
rent expense 4,500
wages expense 5,678
miscellaneous expense 340 |
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Definition
| debit to income summary for $10,518 |
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Term
| not be closed at the end of the acounting cycle |
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Definition
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Term
| clearing account used to close the temporary accounts, and which will also be closed before the finish of the accounting cycle is the... |
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Definition
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Term
accounting cycle. steps in correct order
A. financial statements are prepared
B. an unadjusted trail balace is prepared
C. closing entries are journalized
D. transactions are posted to the ledger
E. a post-closing trail balance is prepared |
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Definition
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Term
| optional step during the closing process |
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Definition
| an end of the period spreadsheet is prepared |
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Term
| not an acutal step in the accounting cycle |
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Definition
| decisions are made after reviewing the financial statements |
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Term
| during which step of the accounting cycle will the net income or loss be determined and reported for the accounting period |
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Definition
| when financial statements are prepared |
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Term
| which steps in the accounting cycle will include the recording of Post ref to either the ledger or the journal |
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Definition
| anytime entries are posted to the ledger |
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Term
| not a reason to close the accounts at the end of the year |
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Definition
| to close all real accounts |
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Term
| annual accounting period commonly used by businesses is... |
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Definition
|
|
Term
| natuaral business year ends when... |
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Definition
| business cycle is at its lowest point |
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Term
| which column should the balance fromthe dividends account be extended to after completing the adjusted trial balance of the end of period worksheet |
|
Definition
| balance sheet debit column |
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Term
| if the debit column amount on the balance sheet is less thatn the credit column amount, after extending the adjusted trial balance to the income statement and to the balance sheet columns of the worksheet |
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Definition
| the difference will be reported as a net loss |
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Term
| what is major difference between the unadjusted trail balance and the adjusted trail balance |
|
Definition
| the adjusted trail balance is prepared after all adjusting entries have been posted, prior to the preparation of the financial statements |
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Term
| which account is reported in the asset section of the balance sheet, even though it has a normal credit balance |
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Definition
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Term
| what will be reported in the subsection called current assets |
|
Definition
| cash, accounts, receivable, supplies |
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|
Term
| order that financial statements should be prepared |
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Definition
| income statement, retained earnings, statement, balance sheet |
|
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Term
| what is the reason for using the income summary account |
|
Definition
| income summary is used as a clearing account to transfer the nominal accounts to the retained earnings account |
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Term
fees earned 18,944
rent expense 4,500
wages expense 5,678
miscellaneous expense 340
what will be included in the first closing entry to close revenues |
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Definition
| credit to income summary for $18,944 |
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Term
| which account will be closed with a debit |
|
Definition
|
|
Term
| which step is last in the accounting cycle |
|
Definition
| closing entries are journalized and posted to the ledger |
|
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Term
| will not be prepared during the accounting cycle |
|
Definition
| pre closing trail balance |
|
|
Term
| must be posted to the ledger |
|
Definition
closing entries
adjusting entries |
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Term
| posting the depreciation expense will be done during what step of the accounting cycle |
|
Definition
| journalizing and posting adjusting entries |
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Term
| step in accounting cycle will the clearing account be used |
|
Definition
| journalizing and posting closing entries |
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Term
| major difference between the post closing tail balance and the other 2 trail balances |
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Definition
| the post closing trial balannce is the only one to include only real accounts |
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Term
| why is it favorable too select a fiscal year that ends when the normal operating cycle is at its lowest point |
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Definition
| the business has more time to analyze the results of the operations |
|
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Term
| fiscal year selected by companies |
|
Definition
| should end during the lowest month of iits operating cycle |
|
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Term
| fiscal year of a flower shop would most likely end on |
|
Definition
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Term
difference between a service and a merchandising company's income statement is that the merchandising companny includes...
|
|
Definition
| cost of merchandisse sold |
|
|
Term
| merchandise inventory is reported as a... |
|
Definition
|
|
Term
| during the month, merchandise is sold for $23,500 cash and for $34,000 on account. the cost of merchandise sold is $41,500. what is th amount of gross profit? |
|
Definition
|
|
Term
|
Definition
| sales less (sales returns and allowances and sales discounts) |
|
|
Term
|
Definition
| net sales less cost of merchandise sold |
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Term
Merchandise inventory, july 1 12,000
merchandse inventory, july 31 13,800
puchases 78,000
purchases returns and allowances 3,500
purchases discounts 2,300
freight in 6,700 |
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Definition
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Term
| the good nes compan sold mrchandise on account $35,000 with tems 2/10, n/30. the cost of merchandise sold was $27,600. which of the following journal entries will be recorded for the sale of merchandise? |
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Definition
| account receivable $35,000 debit and sales $35,000 credit |
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Term
| good news company purchased merchandise on account from a paper company for $56,000, terms 1/15, net 45. good news company rerturned 6,000 of the merchandie and recceived ful credit from paper company. which of the follwing will be included inhe journal entry if the payment is made wthin the discount period? |
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Definition
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|
Term
| good news company sold merchandise to the magazine stand on account, $3,450, terms 2/10, n/30. the cost of merchadise was $1,850. good news company issued a credit memo to magazie stand for $900, cost of merchandise sold $600, which o the folowing will be included in the journal entry forthe receipt oof payment for the invoice within th discont period? |
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Definition
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|
Term
inventory records of good news company indicates that $76,800 of merchandise shold be on hand at the end of the month. the physical inventory indicates that $74,900 is actualy on hand. the journal entry to adjust inventory shrinkage will include:
|
|
Definition
| cost of merchandise sold $1,900 debit |
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Term
| second closing entry for a merchandising business will include |
|
Definition
| sales returns and allowances |
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Term
| second closing entry is posted, income summary is equal to... |
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Definition
|
|
Term
| under the periodic inventory system, which of the following accounts will be used to record the return of inventory purchased |
|
Definition
| purchases returns ad allowances |
|
|
Term
| purchase of inventory under the periodic inventory system the entry would include... |
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Definition
|
|
Term
| purchase discount is a... |
|
Definition
|
|
Term
| difference between a service an a merchandisinig company's balance sheet is that te merchandising compaany includes |
|
Definition
|
|
Term
| cost of merchandise sold is reported as a |
|
Definition
|
|
Term
| during the month, merchandise is sold for $80,500 cash and for $119,000 on account. the cost of merchandise sold is $101,500. what i the amount of gross profit? |
|
Definition
|
|
Term
| cost of merchandise available for sale is equal to... |
|
Definition
| net purchases plus beginning inventory |
|
|
Term
| cost of merchandise sold is calculated by... |
|
Definition
| addig beginning merchandise inventory and cost of purchases less ending merchandise inventory |
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Term
Merchandise inventory, july 1 5,000
merchandise inventory, july 31 52,800
purchases 113,000
purchases returns and allowances 5,500
purchases discounts 2,300
freigh in 9,100
determine thecost of merchandise sld using the following information |
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Definition
|
|
Term
| good news company sold merchanise on ccount 35,000 with terms 2/10, n/30. the cost of merchandise sold was 27,600. what will the saless discount be i the invoice is paid within the discount period? |
|
Definition
|
|
Term
good news comany purchased mechandise on account from a paper company for 8,000, terms 1/15, net 45. good news company retuned 12,000 of the merchandise and received full credit from paper company. how much cash will be recorded if the invoice is paid with the discount period?
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|
Definition
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|
Term
| good news company sold merchandise to the magazine stand on account, 3,450, terms 2/10, n/30. the cost of merchandise was 1,850. good news company issued a credit memo to magazine stand for 900, cost of merchandise sold 600, which of the following will be included in the journal entry for the recording of the credit memo using the perpetual inventory system? |
|
Definition
| merchandise inventory 600 dr, cost of merchandise sold 600 cr |
|
|
Term
| inventory records of good news company indicates that 92,300 of merchandise should be on hand at the end of the month. the physical inventory indicates that 89,900 is actually on hand. the journal entry to adjust inventory shrinkage will include... |
|
Definition
| cost of merchandise sold 2,400 debit |
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|
Term
| first closing entry for a merchandising business will include what? |
|
Definition
|
|
Term
|
Definition
| is to transfer the net income or loss to the retained earnings account |
|
|
Term
| purchases returns and allowances account is considered... |
|
Definition
|
|
Term
| under the periodic inventory system, merchandise inventory is adjusted to the physical inventory |
|
Definition
| during the time closing entries are prepared |
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|
Term
What type of analysis is indicated by the following?
2010 2009 amount percent
current assets
380,000 400,000 20,000 5%
Fixed assets
1,680,000 1,500,000 180,000 12% |
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Definition
|
|
Term
| an analysis in which all the components of a balance sheet are expressed as a percentage of total assets is called... |
|
Definition
|
|
Term
assume the following sales data for a company:
2010 600,000
2009 450,000
what is the percentage increase in sales from 2009 to 2010? (nearest percent) |
|
Definition
|
|
Term
what is the amount of quick assets?
accounts payable 30,000
accounts receivable 45,000
accrued liabilities 7,000
cash 20,000
intangible assets 40,000
inventory 72,000
long term investments 100,000
long term liabilities 75,000
marketable securities 36,000
notes payable (short term) 20,000
property, plant, and equipment 625,000
prepaid expenses 2,000 |
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Definition
|
|
Term
| number of times interest charges are earned is computed as... |
|
Definition
| income before income tax plus interest charges, divided by interest charges |
|
|
Term
| formula used to calculate accounts receivable turnover is... |
|
Definition
| net sales / average accounts receivable |
|
|
Term
| company that is leveragesd is one that... |
|
Definition
|
|
Term
| corporate annual reports typically do not contain which of the following |
|
Definition
|
|
Term
| what clarifies information prevented in the financial statements, as well as expanding upon it where additional deatail is needed? |
|
Definition
| management discussion and analysis section |
|
|
Term
| management's analysis of the results of operations and its opinion about future performance are found in the... |
|
Definition
| management discussion and analysis section |
|
|
Term
| gain or loss from extraordinary items are reported... |
|
Definition
| on the income statement after discontinued operations |
|
|
Term
| when an error in a prior period's statements is discovered |
|
Definition
| the prior period statements are restated |
|
|
Term
| in a common size financial statement, which of the following is given a percentage of 100 percent |
|
Definition
|
|
Term
| horizontal analysis each item is expressed as a percentage of the... |
|
Definition
|
|
Term
| independent auditors do which of the following |
|
Definition
| examine and verify management's conclusions regarding the adequacy of its internal control |
|
|
Term
| annual report does not include |
|
Definition
| salary information for the key executives |
|
|
Term
| annual report, where would a financial statement reader find out if the company's financial statements give a fair depiction of its financial position and operating results |
|
Definition
| in the auditor's report on the fairness of the financial statements |
|
|
Term
| loss on discontinued operations is reported |
|
Definition
| on the income statement before gain or loss on extraordinary items |
|
|
Term
| unusual items affecting prior period staements include... |
|
Definition
| changes from one generally accepted accounting principle to another |
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