accounting final

125 terms by niaquach

Create a new folder

Advertisement Upgrade to remove ads

which of the following payroll costs are shared equally by the employer and the employee

social security

if a bond is issues at par and between interest dates

the cash received by the corporation will be greater than the face value of the bond

one advantage of issuing bonds instead of stock is that

interest is tax deductible wheras dividends are not

which payroll taxes do not stop once an employee reaches a certain level of income

medicare taxes

the amortization of a bond discount

increases the carrying value of a bond and increases interest expense

the principal amount of a bond is

the unpaid balance exclusive of any interest charges

premium on bonds payable

increases the carrying value of the liability

book value per share of common stock is derived by which of the following

stockholders equity divided by the number of shares outstandin

the net assets of a corporation are equal to

total assets minus total liabilities

most preferred stocks have the following characteristics, except

voting rights

a primary disadvantage of the corporate for of organization is

corporate earnings are subject to double taxation

which of the following would usually be the greatest amount

the number of share authorized

the par value of the common stock of a large listed corporation

represents legal capital and is not related to the market price of the stock

treasury stock

decreases total stockholder's equity

stock splits

allow management to conserve cash, give stockholders more shares, cause no change in total assets, liabilities, or stockholder's equity

treasury stock appears as

an equity account

which of the following would have no effect on retained earnings

declaration of a stock split

large stock dividends tend to

keep stock prices down

dividends become a liability of a corporation

on the date the board of directors declares the dividend

when a stock dividend is declared, total stockholder's equity will

not change

which of the following items would reduce retained earnings

common stock dividend, preferred stock dividend, and cash dividend

cash flows from operating activities include all of the following except

payments of dividends

in a statement of cash flows, cash transactions are classified into three major categories

operating activities, financing activities, and investing activities

in a statement of cash flows, collections of accounts receivable are classified as

operating activities

which of the following indicates a cash receipt

a decrease in accounts receivable

when using the indirect method, depreciation expense

increases net cash flow from operations

when equipment is sold at a loss

the net proceeds are show in the investing section

in japan, financial reporting requirements are based primarily on the need to provide information to the

banks

when the government uses central planning to allocate resources and to determine output among various segments of the economy, this is known as

a planned economy

gains and losses from fluctuations in exchange rates on transactions carried out in a foreign currency are reported in

the income statement

the FICA tax paid by an employer is

equal to the amount paid by the employee

which of the following is a characteristic of current liabilities

they are due within one year or within the operating cycle, they may involve estimated amounts, the may be replaced with a new short-term liability rather than being paid in cash

which of the following payroll costs are shared equally by the employer and the employee

social security

unearned revenue

appears on the balance sheet as a liability

cash dividends paid to stockholders will appear in which section of the statement of cash flows

financing activities

a primary disadvantage of the corporate form of organization is

corporate earnings are subject to double taxation

which of the following individuals has the most power to influence corporate policy on a long-term basis

a shareholder with 60% of common stock NOT 80% of preferred stock

retained earnings represents

income that has been invested in the business rather than distributed as dividends to stockholders

the entry to record the issuance of common stock at a price above its par value includes

a credit to additional paid-in capital

a small stock dividend is recorded at

market value

which of the following would have no effect on retained earnings

declaration of a stock split

dividends are first recorded and retained earnings are reduced on

the date of declaration

as a result of 5% stock dividend

the number of shares owned by each stockholder increases by 5%, but the total stockholder's equity does not change

a large stock dividend and a stock split are similar in that they both cause

a reduction in the market price per share

when a stock dividend is declared, total stockholder's equity will

not change

cash flows from operating activities include all of the following except

payments of dividends

cash flows from investing activities include all of the following except

cash proceeds from borrowing

a stock dividend is reported on the

balance sheet

the "bottom line" in a statement of cash flows shows

the cash (including cash equivalents) on the balance sheet at the end of the period

in a statement of cash flows, collections of accounts receivable are classified as

operating activities

which of the following would indicate a cash disbursement

an increase in prepaid expenses

in a statement of cash flows the term cash includes

bank accounts, cash on hand, and cash equivalents

which method will yield the higher cash flows from financing activities

both direct and indirect methods will yield the same amount

a comparative financial statement

places two or more years of a financial statement side by side in order to compare the results

the change in financial statement items from a base year to following years are called

trend percentages

quick assets include

cash, marketable securities, and receivables

all of the following ratios are considered measures of liquidity except

debt ratio

the current ratio will be ______ to the quick ratio

greater than or equal to

the current ratio

is computed by dividing current assets by current liabilities

current assets are those assets that can be converted into cash within

one year or the operating cycle

which of the following is considered a quick asset

accounts receivable

the cost of goods sold account is closed by

debiting income summary and crediting cost of goods sold

which of the following factors would suggest the use of a periodic inventory system

a small company, high volume of sales and a manual accounting system

gross profit is the difference between

net sales and the cost of goods sold

under the perpetual inventory system which journal entry would indicate a purchase of merchandise

debit inventory and credit cash

net sales is calculated by

subtracting sales returns and sales discounts from sales

inventory shrinkage is caused by

shoplifting, breakage, spoilage

the cost of the transportation of inventory purchased

becomes part of the cost of inventory

after preparing a bank reconciliation, a journal entry would be required for which of the following

interest earned on the company's checking account

which of the following are always listed on the balance sheet at face amount

cash

the primary purpose of a petty cash fund is

convenience

a bank reconciliation explains the differences between

the balance per bank statement and the cash balance per the accounting records of the depositor

during preparation of a bank reconciliation, outstanding checks should be

deducted from the balance per the bank statement

the allowance for doubtful accounts represents

the difference between the face value of accounts receivable and the net realizable value or accounts receivable

the aging of the accounts receivable approach to estimating uncollectible accounts does not

stress the relationship between uncollectible accounts expense and net sales

under the allowance method, when a receivable that had been previously written off is collected

net income is not affected

when prices are increasing which inventory method will produce the highest cost of goods sold

LIFO

gross profit rate is equal to

gross profit divided by net sales

in periodic inventory system, recording a sale on account involves debiting which of the following accounts

only accounts receivable

which of the four inventory cost flow assumptions transfers the most recent purchase cost to the cost of goods sold and the remaining items in inventory are valued at the oldest acquisition costs

LIFO

which of the following results in the inventory being stated at the most current acquisition costs

FIFO

during periods of inflation which method will yield the smallest ending inventory and the largest cost of goods sold

LIFO

a store that sells expensive custom made jewelry is likely to determine its cost of goods sold using

specific identification

as a result of taking an annual physical inventory, it usually is necessary in a perpetual inventory system to make an entry

reducing assets and increasing the cost of goods sold

when straight-line depreciation is in use, the depreciation rate of an asset is equal to

1 divided by the life of the asset

when comparing the units-of-output method of depreciation with straight-line depreciation

the depreciation expense in the first year may be greater than, equal to, or less under the units-of-output

a gain is recognized on the disposal of plant assets when

the sales price is greater than the book value and greater than the residual value

revenue expenditures are recorded as

an expense

sales revenue is recognized in the period which

merchandise is delivered to the customer

when making sales, the sales taxes received are

a liability

if sales discounts are shown as a separate item in the financial statements, they should be shown as a

deduction from gross sales revenue

accounts receivables are

usually converted into cash in 30-60 days, relatively liquid assets, usually appear after short-term investments in marketable securities

financial assets include all of the following except

inventories

an NSF check returned by the bank should be entered in the depositor's accounting records by a debit to

accounts receivable

which of the following inventory valuation methods is only an estimate of actual costs

both retail and gross profit methods are only estimations

the just-in-time concept of inventory management is best illustrated by

homebuilder have supplies delivered the night before

which of the following is a capital expenditure

sales tax paid in conjunction with the purchase of office equipment

the application of the matching principle to depreciation of plant and equipment can best be described as

offsetting revenue of an accounting period with the portion of the cost of plant and equipment estimated to have been used up during the accounting period

capital expenditures are recorded as

an asset

financial statements may be prepared for

one year or less than one year

which organization best serves the professional needs of a cpa

AICPA

which financial statement is prepared as of a specific date

the balance sheet

profitability may be defined as

the ability to increase retained earnings

which of the following is not considered one of the 3 primary financial statements

statement of budgeting activities

a balance sheet is designed to show

the assets, liabilities, and owner's equity of a business as of a particular date

retained earnings is

the owner's equity that has accumulated as a result of profitable operations

the balance sheet item that represents the portion of owner's equity resulting from profitable operation of the business is

retained earnings

preparing a journal entry in proper form involves all of the following EXCEPT

computing the balances in accounts involved in the transaction

a trial balance that is out of balance indicates that

there is not an equality of debit and credit amounts in the ledger

collection of an accounts receivable

does not change the total assets of a company

a journal entry which records revenue must include

a credit to the revenue account

a journal entry to to recognize an expense could include each of the following except

a debit to a liability account

which of the following accounts normally does not have a debit balance

capital stock

interest that has accrued during the accounting period on a note payable to the bank calls for an adjusting entry consisting of

a debit to interest expense and credit to interest payable

unearned revenue appears

as part of the retained earnings

which of the following is considered a contra-asset account

prepaid expenses, unearned revenue, and accumulated depreciation

shop supplies are expensed when

consumed

accumulated depreciation is

the depreciation expense recorded on an asset to date

a worksheet consists of all of the following except

transaction entries

when a worksheet is prepared which account would not be entered into the income statement columns

unearned revenue

during the closing process

all revenue accounts are debited and expense accounts are credited

if income summary has a net credit balance, it signifies

net income

dividends will have what effect upon retained earnings

decrease

net income from the income statement appears on the

retained earnings statement

closing entries should be made

every year

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set