Intro To Accounting 20653 Exam 1 Laurie Wood Tcu

process-costing system – a costing system that accumulates production
costs by process or by department for a given period of
time.
The things one owns are – Assets
Equities increase with – Credit
monetary unit assumption – principle states that you only record business transactions that can be expressed in terms of a currency. (assume the $ sign so you don't use the $ sign)
acid test ratio/quick ratio – quick assets divided by current liabilites
"Investing Section" – section of statement of cash flows

cash related to buying and selling long-term assets used in the business

Can management influence the ratios that measure liquidity – Yes
Hilda has recently developed attacks of vertigo which is a sensation of motion sickness. She feels dizzy and as if the objects in the room are spinning. When seen by a specialist, she was told it was a problem with her ear.  Which of the following might be the cause?
90. The assumption that the assets and liabilities of the business are accounted for on the books of the company but not included in the records of the owner is the:
A. Monetary unit assumption.
B. Going concern assumption.
C. Economic entity assumption.
D. Periodicity assumption. – C. Economic entity assumption.
Internal control consists of all the related methods and measures adopted within an organization to safeguard its assets and to enhance the accuracy and reliability of its accounting records.
A. True
B. False – TRUE
current asset is – converted to cash or used within one year.
Temporary Accounts – revenues, expenses, and withdrawal accounts
leasehold – the rights the lessor grants to the lesse under the terms of the lease
waste – useless or profitless activity
Hildа hаs recently develоped аttacks оf vertigо which is a sensation of motion sickness. She feels dizzy and as if the objects in the room are spinning. When seen by a specialist, she was told it was a problem with her ear.  Which of the following might be the cause?
"Interest Coverage" Classify, Calculate, and Interpret – Solvency Ratio

Interest Coverage = [ EBIT / Interest Payments ]

Ability to repay its debt obligations. LOW: difficulty meeting its debt payments

The principles of internal control do not include
A. establishment of responsibility.
B. documentation procedures.
C. management responsibility.
D. independent internal verification. – C
CURRENT ASSETS – ASSETS THAT ARE EXPECTED TO BE CONVERTED TO CASH, SOLD OR USED UP DURING THE NEXT 12 MONTHS, OR WITHIN THE BUSINESS'S NORMAL OPERATING CYCLE IF THE CYCLE IS LONGER THAN A YEAR (UNCOMMON)

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