Intro To Accounting 20653 Exam 4 Laurie Wood Tcu

FOB Destination – Situation in which the buyer takes ownership to the goods at the delivery destination point and the seller typically pays the freight. Free Shipping
Key Trends (FIFO vs. LIFO) – During periods of increasing prices (inflation), using FIFO results in (1) lower COGS and therefore higher Gross Profit & Net Income on the Income Statement; and (2) higher Ending Inventory on the Balance Sheet. Note: the opposite effect would occur during periods of decreasing prices (deflation)
The usual starting point in budgeting is to forecast net income. – False
balance sheet – assets, liability, owners equity
employer payroll taxes – FICA social security; FICA medicare; FUTA; SUTA
Going Concern Assumption – In the absence of contrary information, a company is assumed to have a long life. The current relevance of the historical cost principle is dependent on the going-concern assumption.
Cancelled Check. – A check that has been paid by the bank and returned to the drawer for recordkeeping.
Which of the following does not refer to Internal Equity?
Statement of changes in stockholders' equity – explains the effects of transactions on stockholders' equity during the accounting period
stockholders' equity – paid-in capital & retained earnings
Which оf the fоllоwing does not refer to Internаl Equity?
Statement of retained earnings – summary of the changes in the retained earnings of a corporation during a specific period.

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