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C214 Study Guide Qyestions

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Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F)
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Terms in this set (371)
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F)
False
Stocks and bonds are two types of financial instruments (T/F)
True
The matching principle in accrual accounting requires that:
Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized.
A high-quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of the product with a cash payment of $300,000 today and $200,000 to be paid 60 days. The expense associated with the product is $300,000, of which $100,000 has not been paid to your supplier. Under accrual based accounting system, you will most likely report
Revenues of $500,000 and Expenses of $300,000.
A firm reported retained earnings of $300 in 12/31/20x2. For 12/31/20x3, the firm reports retained earnings of $400 and pays dividends of $25. What was net income in 20x3
Net income = 400-300+25 = 125