Accountingcentury 21

False – When cash is paid on account a liability is increased
revenue – an inflow of assets resulting from the sale of goods and services
HISTORICAL COST PRINCIPLE – Goodwill is recorded only at time of purchase.
Balance sheet – reports financial position at a particular point in time
The inventory account is credited when – inventory is sold to a customer
Cost accounting standards board – Group authorized by the Us congress to establish cost accounting standards for government contractors
Check 21 – when a written check is electronically transferred and funds are immediately withdrawn from the account; similar to a debit card
Footing – A small pencil figure written at the base of an amount column showing the sum if the entries in the column.
unearned revenues – Cash received and reported as liabilities before revenue is earned.
Trustee – Is an independent party appointed to represent the bondholder.
Fill in the blank with the appropriate form of “ser.” –Yo ________ Héctor Camacho.
Buying Treasury Stock Transaction – Assets and equity decrease by an amount equal to the cost of treasury stock purchased
Return on Assets – Net income / Average total assets
dividends – money repaid to owners/investors
Times Interest Ratio – Income before expense / interest expense
all entries made fro the accounts receivable ledger will come from: – sales journal
cash receipts journal or
general journal
Expense – A decrease in owner's equty resulting from the operation of a business
Fill in the blаnk with the аpprоpriаte fоrm оf “ser.” –Yo ________ Héctor Camacho.
compatibility principle – an accounting information system conform with a company's activities, personnel, and structure
The use of ethics in business making decisions – Business ethics
Money paid for the use of money is called: – Interest
temporary accounts (normal accounts) are?
Include? – accumulate data related to one accounting period
1) income statement accounts
2) dividends account
3) income summary
closing process applies to only these account
Tinker Bell Company has the following:

Units/Unit Cost
Inventory, Jan. 1
8,000/$11
Purchase, June 19
13,000/$12
Purchase, Nov. 8
5,000/$13

If Tinker Bell has 9,000 units on hand at December 31, the cost of the ending inventory under LIFO is:
A. $113,000.
B. $108,000.
C. $99,000.
D. $100,000. – D

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