Introduction To Accounting Final Financial Multiple Choice

Accruing revenues – initially, the revenue is recognized and a receivable is created
Source Document – proof of a transaction
Manufacturing Overhead Consists of: – Manufacturing facility costs; the cost of manufacturing equipment; indirect labor; indirect material
a. – Contra account: an account linked with another account, having an opposite normal balance and reported as a subtraction from that other account's balance.
Petty Cash – An amount of cash kept on hand and used for making small payments.
Where GAAP applies to – U.S. Only
Estimated Liabilities – Known obligation of an uncertain amount, but one can be reasonably estimated.
What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year?
Balance Sheet – a financial statement that reports assets, liabilities, and owner's equity on a specific date
return on assets – net income/ avg. assets
Special Endorsement – endorsement indicating a new owner of a check
IASB (Acronym) – International Accounting Standards Board
management by exception (controlling) – different between actual and planned
Beginning inventory + net purchases – ending inventory =: – Cost of Goods sold
Revenues – expenses = – Net income
Whаt is the return оn а 5 percent cоupоn bond thаt initially sells for $1,000 and sells for $900 next year?
Which of the following statements is true?
a. All companies use a calendar year for their annual financial statements.
b. A company is likely to end its fiscal year during the slowest time of its year.
c. For comparison purposes, all companies begin their first quarter on January 1, regardless of when they begin their fiscal year.
d. A quarter represents one-fourth of a company's operating cycle. – b. A company is likely to end its fiscal year during the slowest time of its year.
reporting – telling the results of a financial statement
Owners asset – Capital stock + retained earnings
Business plan – A formal written document that describes the nature of business and how it will operate
At the end of the month, a funeral home's asset's totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000. Which of the following statements is true? – Owner's equity = 30,000
Net Income =$2,000

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