Study sets matching "accounting chapter 9"

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Study sets matching "accounting chapter 9"

32 terms
Managerial accounting chapter 9
Activity based budgeting ABB
Budget
Budget committee
Budget director ( chief budget officer)
The process of developing a master budget using information o…
A detailed plan, expressed in quantitative terms, that specif…
A group of top management personnel who advise the budget dir…
The individual designated to be in charge of preparing an org…
Activity based budgeting ABB
The process of developing a master budget using information o…
Budget
A detailed plan, expressed in quantitative terms, that specif…
29 terms
Accounting Chapter 9 Theory
Merchandise
Merchandising Business
Retail Merchandising Business
Wholesale Merchandising Business
Goods that a business purchases to sell
A business that purchases and sells goods
A merchandising business that sells to those who use or consu…
A business that buys and resells merchandise to retail mercha…
Merchandise
Goods that a business purchases to sell
Merchandising Business
A business that purchases and sells goods
Accounting Chapter 9 Study Guide
An organization with the legal rights…
each unit of ownership in a corporation
total shares of ownership in a corpora…
an owner of one or more shares of a co…
corporation
share of stock
capital stock
stockholder
An organization with the legal rights…
corporation
each unit of ownership in a corporation
share of stock
18 terms
Chapter 9 - Libby, Libby & Short - Financial Accounting
Which of the following is not a curren…
Which of the following is incorrect?…
Which of the following is the result o…
Which of the following transactions wi…
Current liabilities are those that will mature or be due with…
The first statement is correct because current liabilities wi…
When cash is received but goods or services are not provided…
The accounts payable ratio is computed by dividing cost of go…
Which of the following is not a curren…
Current liabilities are those that will mature or be due with…
Which of the following is incorrect?…
The first statement is correct because current liabilities wi…
16 terms
Chapter 9 Vocab Accounting
receivables
AR
NR
bad debt expense
includes all money claims against other entities, including p…
debit- most common transaction is selling merchandise or serv…
amounts that customers owe, more formal, more than 60 days, u…
operating expense recorded from uncollectible receivables, un…
receivables
includes all money claims against other entities, including p…
AR
debit- most common transaction is selling merchandise or serv…
22 terms
Intermediate Accounting Chapter 9
average days to sell inventory
conventional retail inventory method
cost-of-goods-sold method
cost-to-retail ratio
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
A method of valuing inventory in which cost of goods sold is…
The total goods available for sale at cost divided by the tot…
average days to sell inventory
A measure that represents the average number of days' sales f…
conventional retail inventory method
A method of valuing ending inventory that uses only a cost ra…
Accounting: Chapter 9-1 Key Terms
Merchandise
Merchandising Business
Retail Merchandising Business
Wholesale Merchandising Business
Goods that a business purchases to sell
A business that purchases and resells goods
A merchandising business that sells to those who use or consu…
buys and resells merchandise primarily to other merchandising…
Merchandise
Goods that a business purchases to sell
Merchandising Business
A business that purchases and resells goods
16 terms
Accounting 201 Chapter 9
Accounts Receivable
Accounts Receivable Turnover
Aging of Accounts Receivable
Allowance for Doubtful Accounts
Amounts due from customers for credit sales. Backed by the cu…
Measure of both the quality and liquidity of accounts receiva…
Process of classifying accounts receivable by how long they a…
Contra asset account with a balance approximating uncollectib…
Accounts Receivable
Amounts due from customers for credit sales. Backed by the cu…
Accounts Receivable Turnover
Measure of both the quality and liquidity of accounts receiva…
Accounting Chapter 9
Financial Statements
Income Statement
Statement of changes in owners equity
Balance sheet
summarize the changes resulting from business transactions th…
reports the net income, or net loss for a specific period of…
summarizes changes in the owners capital account as a resulti…
is a report of the balances in the permanent accounts at the…
Financial Statements
summarize the changes resulting from business transactions th…
Income Statement
reports the net income, or net loss for a specific period of…
27 terms
Accounting Chapter 9 Vocabulary
Accelerated-Depreciation Method
Additions and Improvements
Amortization
Asset Turnover
A deprecation method that produces higher depreciation expens…
Cost incurred to increase operating efficiency, productive ca…
the process of allocating to expense the cost of an intangibl…
Indicates how efficiently a company uses its assets to genera…
Accelerated-Depreciation Method
A deprecation method that produces higher depreciation expens…
Additions and Improvements
Cost incurred to increase operating efficiency, productive ca…
Century 21 Accounting Chapter 9
Merchandise
Merchandising Business
Retail Merchandising Business
Wholesale Merchandising Business
Goods that a business purchases to sell.
A business that purchases ... and sells goods.
A merchandising business that sells to those who use or consu…
A business that buys ... and resells merchandise to retail merch…
Merchandise
Goods that a business purchases to sell.
Merchandising Business
A business that purchases ... and sells goods.
38 terms
Computerized Accounting Chapter 9
Accounts Payable Ledger
Articles of Incorporation
Capital
Capital Stock
the subsidiary ledger containing vendor accounts
A legal document that identifies basic characteristics of a c…
The assets or other financial resources avaliable to a business
The total shares of ownership in a corporation
Accounts Payable Ledger
the subsidiary ledger containing vendor accounts
Articles of Incorporation
A legal document that identifies basic characteristics of a c…
6 terms
Accounting 221: Chapter 9
contingent liability
Accounting standards require companies…
Probable and estimable
reasonably probable
a potential obligation arising from a past event. The amount…
1) Probable and estimable... 2) reasonably probable... 3) remote
recognize in financial statements
disclose in footnotes of f/s
contingent liability
a potential obligation arising from a past event. The amount…
Accounting standards require companies…
1) Probable and estimable... 2) reasonably probable... 3) remote
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
41 terms
Accounting 1, Chapter 9
merchandise
merchandising business
retail merchandising business
wholesale merchandising business
Goods that a business purchases to sell.
A business that purchases and resells goods.
A merchandising business that sells to those who use or consu…
A business that buys and resells merchandise primarily to oth…
merchandise
Goods that a business purchases to sell.
merchandising business
A business that purchases and resells goods.
32 terms
Intermediate Accounting Chapter 9
Market
Net Realizable Value
Lower-of-Cost-or-Market
Upper Limit (Ceiling)
in the phrase "the lower-of-cost-or-market" (LCM) generally m…
estimated selling price in the ordinary course of business, l…
company values inventory at the lower-of-cost-or-market, with…
net realizable value of inventory
Market
in the phrase "the lower-of-cost-or-market" (LCM) generally m…
Net Realizable Value
estimated selling price in the ordinary course of business, l…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
32 terms
Chapter 9: Fundamental Financial Accounting Concepts
Amortizing
classified balance sheets
contingent liability
contra liability account
Systematically allocating the cost of intangible assets to ex…
Balance sheet that distinguishes between current and noncurre…
Obligations with amounts due that depend on events that will…
Account used to reduce the reported value of the liability to…
Amortizing
Systematically allocating the cost of intangible assets to ex…
classified balance sheets
Balance sheet that distinguishes between current and noncurre…
21 terms
Accounting II (chapter 9)
Par-Value Stock
Pre-emptive right
Authorized capital stock
Outstanding Stock
Stock has a specific value printed on the stock certificate
The ability of common stockholders to purchase additional sha…
The maximum number of shares a corporation is allowed to issu…
Stock that is actually in the hands of the stockholder is cal…
Par-Value Stock
Stock has a specific value printed on the stock certificate
Pre-emptive right
The ability of common stockholders to purchase additional sha…
5 terms
Accounting 225 Chapter 9
Flexible Budget
Flexible Budget Application
Activity Variance
Revenue and Spending Variances
AQ x SR or SP
actual costs are compared to what the costs should have been…
compares flexible budget to planned budget
compare actual results to flexible budget
Flexible Budget
AQ x SR or SP
Flexible Budget Application
actual costs are compared to what the costs should have been…
26 terms
Accounting -- chapter 9
accelerated-depreciation method
additions and improvements
amorization
asset turnover
depreciation method that produces higher depreciation expense…
costs incurred to increase the operating efficiency, producti…
the allocation of the cost of an intangible asset to expense…
a measure of how efficiently a company uses its assets to gen…
accelerated-depreciation method
depreciation method that produces higher depreciation expense…
additions and improvements
costs incurred to increase the operating efficiency, producti…
28 terms
Accounting: Chapter 9: Key Terms
capital stock (stock)
cash discount
cash over
cash payments journal
total shares of ownership in a corporation
a deduction that a vendor allows on the invoice amount to enc…
a petty cash on hand amount that is more than a recorded amount
a special journal used to record only cash payment transactions
capital stock (stock)
total shares of ownership in a corporation
cash discount
a deduction that a vendor allows on the invoice amount to enc…
Managerial Accounting Chapter 9
Part 1 of Cash Budget
Part 2 of Cash Budget
Part 3 of Cash Budget
Part 4 of Cash Budget
Beginning Balance... add: receipts... cash sales... collections from c…
less: disbursements... direct materials... direct labor... manufacturi…
excess (deficiency) of available cash over disbursements... (tot…
Financing... Borrowing... Repayments... Ending Cash Balance
Part 1 of Cash Budget
Beginning Balance... add: receipts... cash sales... collections from c…
Part 2 of Cash Budget
less: disbursements... direct materials... direct labor... manufacturi…
22 terms
Tax Accounting Chapter 9
adjusted basis
amount realized
bargain purchases
carryover basis
The original basis, plus or minus changes in the amount of un…
Capital is recovered at disposition by offsetting the adjuste…
A true bargain purchase is taxable to the buyer. Such a purch…
Indicates that all or part of an asset's basis transfers from…
adjusted basis
The original basis, plus or minus changes in the amount of un…
amount realized
Capital is recovered at disposition by offsetting the adjuste…
43 terms
Accounting Chapter 9 Vocabulary Terms
Accounts payable ledger
Accounts payable trial balance
Articles of incorporation
Capital
The subsidiary ledger containing vendor accounts.
See schedule of accounts payable.
A legal document that identifies basic characteristics of a c…
The assets or other financial resources available to a busine…
Accounts payable ledger
The subsidiary ledger containing vendor accounts.
Accounts payable trial balance
See schedule of accounts payable.
24 terms
Chapter 9- Accounting for Receivables
receivable
debit Accounts Receivable, credit sale…
debit cash, credit Accounts Receivable
Customer's credit is evaluated by cred…
an amount due from another party
journal entry for sales on credit
Journal entry for payment from customer of sales on credit
Advantages of allowing customers to use credit cards
receivable
an amount due from another party
debit Accounts Receivable, credit sale…
journal entry for sales on credit
18 terms
Accounting Chapter 9- Liabilities
bonds payable
callable bond
convertible bonds/notes
discount (on a bond)
groups of debt securities issued to multiple lenders called b…
Bonds that are paid off early at a specified price at the opt…
Bonds or notes that may be converted into the issuing company…
When bonds payable are issued for less than their maturity pr…
bonds payable
groups of debt securities issued to multiple lenders called b…
callable bond
Bonds that are paid off early at a specified price at the opt…
12 terms
1st accounting chapter 9
long term liabilities
liabilities
accounts payable
sales tax payable
obligations not expected to be paid within one year (or the c…
must sometimes be estimated
are amounts owed to suppliers for products and/or services pu…
is a current liability for retailers
long term liabilities
obligations not expected to be paid within one year (or the c…
liabilities
must sometimes be estimated
11 terms
Financial Accounting Chapter 9
average-cost method
cost of goods available for sale
cost of goods purchased
cost of goods sold
inventory costing method that assumes that the goods availabl…
the sum of the beginning merchandise inventory plus cost of g…
the sum of net purchases plus freight-in
the total cost of merchandise sold during a period , determin…
average-cost method
inventory costing method that assumes that the goods availabl…
cost of goods available for sale
the sum of the beginning merchandise inventory plus cost of g…
61 terms
Accounting Chapter 9 Vocab
Merchandise
Merchandising Business
Retail Merchandising Business
Wholesale Merchandising Business
Goods that a business purchases in order to sell.
A business that purchases and resells goods.
A merchandising business that sells to those who use or consu…
A business that buys and resells merchandise primarily to oth…
Merchandise
Goods that a business purchases in order to sell.
Merchandising Business
A business that purchases and resells goods.
28 terms
Accounting 2036 Chapter 9
sole proprietorship
unlimited liability
limited life
partnership
a company owed by one person who is the sole investor of capi…
statement that says that the owner of a sole proprietorship m…
span of sole proprietorship because if a owner decides to sto…
a company owned by 2 or more individuals who each invest capi…
sole proprietorship
a company owed by one person who is the sole investor of capi…
unlimited liability
statement that says that the owner of a sole proprietorship m…
9 terms
Financial Accounting: Chapter 9
plant asset
depreciation
cost principle
land improvement
long-lived, tangible asset such as land, buildings, and equip…
the process by which businesses spread the allocation of a pl…
a principle that states that acquired assets and services sho…
a depreciable improvement to land, such as fencing, sprinkler…
plant asset
long-lived, tangible asset such as land, buildings, and equip…
depreciation
the process by which businesses spread the allocation of a pl…
16 terms
Managerial Accounting Chapter 9
Contribution Margin Per Unit Of Scarce…
Differential Analysis
Full Cost Pricing
Incremental Analysis Approach
The contribution margin per unit of output divided by the qua…
The revenue and cost differences among alternatives.
The pricing method that adds a markup to the full cost of a p…
An approach to decision making that uses only the changed rev…
Contribution Margin Per Unit Of Scarce…
The contribution margin per unit of output divided by the qua…
Differential Analysis
The revenue and cost differences among alternatives.
25 terms
Chapter 9 Accounting 433
Results of PCAOB Inspections
The Control Matrix
Four Elements of Control Matrix
Effectiveness (Step 1 Control Matrix)
-In 15% of engagements inspected, firms failed to gather suff…
Is a tool designed to assist you in evaluating or assessing t…
1. Control Goals... 2. Recommend control plans... 3. Cell entries... 4…
Goals measures of success for the operations process
Results of PCAOB Inspections
-In 15% of engagements inspected, firms failed to gather suff…
The Control Matrix
Is a tool designed to assist you in evaluating or assessing t…
29 terms
Chapter 9 Accounting Terms
merchandise
merchandising business
retail merchandising business
wholesale merchandising business
Goods that a business purchases to sell
A business that purchases and sells goods
a merchandising business that sells to those who use or consu…
A business that buys and resells merchandise to retail mercha…
merchandise
Goods that a business purchases to sell
merchandising business
A business that purchases and sells goods
54 terms
ACCOUNTING 208 CHAPTER 9
Plant assets
Historical cost principle
Costs consists of all _______necessary…
Revenue expenditures
Are resources that have physical substance (a definite size a…
Requires that companies record plant assets at cost.
Expenditure
when a cost is not included in a plant asset account, then it…
Plant assets
Are resources that have physical substance (a definite size a…
Historical cost principle
Requires that companies record plant assets at cost.
24 terms
ACCOUNTING CHAPTER 9 Terms
accelerated depreciation
amortization
book value
capital expenditures
Methods of depreciation that call for recognition of relative…
the systematic write-off to expense of the cost of an intangi…
The cost of a plant asset minus the total recorded depreciati…
Cost incurred to acquire a long-lived asset. Expenditures tha…
accelerated depreciation
Methods of depreciation that call for recognition of relative…
amortization
the systematic write-off to expense of the cost of an intangi…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
53 terms
Accounting Chapter 9
What types of assets are there?
Current Assets
Non-current (Long-Term) Assets
Property, Plant, and Equipment (PP&E)
Current and non-current
Cash, accounts receivable, inventory
Property Plant and Equipment (PP&E), Land, Intangible Assets
plant assets, fixed assets
What types of assets are there?
Current and non-current
Current Assets
Cash, accounts receivable, inventory
20 terms
accounting chapter 9
accelerated depreciation method
additions and improvements
amortization
asset turnover
a depreciation method that produces higher depreciation expen…
costs incurred to increase the operating efficiency, producti…
the process of allocating to expense the cost of an intangibl…
indicates how efficiently a company uses its assets to genera…
accelerated depreciation method
a depreciation method that produces higher depreciation expen…
additions and improvements
costs incurred to increase the operating efficiency, producti…
22 terms
Accounting Chapter 9
Current liability
Note payable
Current portion of a long term debt
long term liability
an obligation of a business that is expected to be satisfied…
a liability generated by the issuance of a promissory note to…
the portion of a long term liability that will be paid within…
any obligation of a business that is expected to be satisfied…
Current liability
an obligation of a business that is expected to be satisfied…
Note payable
a liability generated by the issuance of a promissory note to…
19 terms
Accounting-Chapter 9: Accounting for Receivables
Accounts Receivable
Accounts Receivable Turnover
Aging the Accounts Receivable
Allowance Method
Amounts owed by customers on account
A measure of liquidity of accounts receivable; computed by di…
The analysis of customer balances by the length of time they…
A method of accounting for bad debts that involves estimating…
Accounts Receivable
Amounts owed by customers on account
Accounts Receivable Turnover
A measure of liquidity of accounts receivable; computed by di…
accounting chapter 9
acquisition of tangible assets
all reasonable and necessary costs to…
capitalized when land is purchased
capitalized when buildings are purchased
are capitalized (rather than expenses)
a cost of the asset (capitalized)
purchase cost... legal fees... survey fees... title search fees
purchase/construction cost... legal fees... appraisal fees... architec…
acquisition of tangible assets
are capitalized (rather than expenses)
all reasonable and necessary costs to…
a cost of the asset (capitalized)
41 terms
BHS Accounting 10E Chapter 9 Vocabulary
merchandise
merchandising business
retail merchandising business
wholesale merchandising business
goods that a business purchases to sell
business that purchases and resells goods
merchandising business that sells to those who use or consume…
merchandising business that buys and resells merchandise prim…
merchandise
goods that a business purchases to sell
merchandising business
business that purchases and resells goods
Braun & Tietz Managerial Accounting: Chapter 9
Budget committee
COD: Collect on delivery or Cash on de…
Cost of goods sold, inventory, and pur…
Financial budgets
A group comprised of upper management as well as cross-functi…
A sales term indicating that the inventory must be paid for a…
A merchandiser's budget that computes the cost of goods sold,…
Budgets that include the capital expenditures budget and the…
Budget committee
A group comprised of upper management as well as cross-functi…
COD: Collect on delivery or Cash on de…
A sales term indicating that the inventory must be paid for a…
Accounting 201 Chapter 9
Plant Assets
Cost Principle
Cost
Revenue Expenditure
Resources with physical substance used in the operations of a…
Requires plant assets to be recorded at cost
All expenditures necessary to acquire an asset and make it re…
The cost is expensed immediately
Plant Assets
Resources with physical substance used in the operations of a…
Cost Principle
Requires plant assets to be recorded at cost
5 terms
Managerial Accounting Chapter 9
Activity Variance
Flexible Budget
Planning Budget
Revenue Variance
The difference between a revenue or cost item in the static p…
A report showing estimates of what revenues and costs should…
A budget created at the beginning of the budgeting period tha…
The difference between how much the revenue should have been,…
Activity Variance
The difference between a revenue or cost item in the static p…
Flexible Budget
A report showing estimates of what revenues and costs should…
22 terms
Financial Accounting Chapter 9
Accrued Liabilities
Annuity
Capital Lease
Contingent Liability
Expenses that have been incurred but have not been paid at th…
Series of periodic cash receipts or payments that are equal i…
...
A potential liability that has arisen as the result of a past…
Accrued Liabilities
Expenses that have been incurred but have not been paid at th…
Annuity
Series of periodic cash receipts or payments that are equal i…
40 terms
Accounting: Chapter 9 Review
True
false
True
True
T/F: Unlike a proprietorship, a corporation exists independen…
T/F: A corporation can incur liabilities but cannot own prope…
T/F: As in proprietorship, information in a corporations acco…
T/F: The selling price of merchandise must be greater than th…
True
T/F: Unlike a proprietorship, a corporation exists independen…
false
T/F: A corporation can incur liabilities but cannot own prope…
81 terms
Intermediate Accounting Chapter 9
Inventory
nature of the business
raw materials, work in process, and fi…
raw materials
assets held for sale in the normal course of business; also,…
The type of items included in the inventory of a merchandisin…
Three types of inventory for a manufacturing firm
inventory acquired by a manufacturer for use in the productio…
Inventory
assets held for sale in the normal course of business; also,…
nature of the business
The type of items included in the inventory of a merchandisin…
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