Managerial Accounting Chapter 2: Managerial Accounting And Cost Concepts

Issuance of common stock for cash affects which basic element of financial statements? – Equity.
Accrued Income – income actually earned during an accounting period but which will not be received until a future period.
Allowance Method – Bases bad debt expenses on an estimate of uncollectible accounts.
hot stock – a stock who rises quickly the day it goes public
Intangible Assets – Long term assets used to produce or sell products or services usually lack physical form and have uncertain benefits
BALANCE SHEET – which financial statement is ACCOUNTS RECEIVABLE usually found
a notes receivable occurs when the company loans its cash to another party – the company charges interest for providing the service of loaning the money
expenses – The costs incurred in the process of producing revenues.
contingencies – material events that have an uncertain outcome
Cato Corporation is owned by three engineers, all of whom are employed by the corporation. It primarily performs civil engineering activities with respect to construction projects. During the current year, Cato Corporation earned $150,000 of taxable income. Cato has not elected to be taxed under Subchapter S. What is Cato’s current-year regular tax liability?
Gross Profit – Sales Revenue – COGS
Dividend – A distribution of profits of a corporation to its stockholders as declared by the board or director is
Maintenance and repairs Expense – Expenses
Reissuing Treasury Stock for Employee Compensation Transaction – Expenses are increased, treasury stock is decreased and additional paid-in capital is either increased or decreased for the difference
What are the steps to correct an incorrect amount? – 1. Draw a line through the incorrect amount.
2. Write the correct amount just about the correction in the same space.
3. Re calculate the account balance, and correct the account balance on the worksheet
Full costs of a product include variable costs, but not fixed costs. – False
income statement – rachunek zysków i strat usa
Cаtо Cоrpоrаtion is owned by three engineers, аll of whom are employed by the corporation. It primarily performs civil engineering activities with respect to construction projects. During the current year, Cato Corporation earned $150,000 of taxable income. Cato has not elected to be taxed under Subchapter S. What is Cato’s current-year regular tax liability?
written-down/carrying/net book value – Historic cost after adjustment for usage (depreciation)
Two parts to stockholders' Equity – paid in capital and retained earnings
Standard Setting – is a political process in the sense that it seeks to consider alternative viewpoints and reach a consensus.
tests of profitability – return on onwner's investment is from _
FAITHFUL REPRESENTATION PRINCIPLE – PRINCIPLE THAT ASSERTS ACCOUNTING INFORMATION IS BASED ONT HE FACT THAT THE DATA FAITHFULLY REPRESENTS THE MEASUREMENT OR DESCRIPTION OF THAT DATA. FAITHFULLY REPRESENTED DATA ARE COMPLETE, NEUTRAL, AND FREE FROM MATERIAL ERROR.

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