Intro To Accounting 20653 Exam 3 Laurie Wood Tcu

What is the Economic entity assumption? – An assumption that every economic entity can be separately identified and accounted for.
Cash inflow- Cash outflow = Net cash flow – The equation on the Statement of Cash Flows
computing costs of goods sold – 1. beginning inventory balance
2. additional purchases
3. Freight costs on merchandise (shipping costs)
4. purchase returns and allowances
Sole Proprietorship – A type of ownership structure in which one person owns the business. Assumes all risk
The interest rate specified in a note is for a
A. day.
B. month.
C. week.
D. year – D
fiscal period – a period of time covered by an accounting report.
A _____ is a hardware device that allows several nodes to share one communication channel.
sistema de lo devengado – accrual method
Iclicker Appropriate account to increase decrease – Increase prepaid rent, decrease fasb
A funeral car is purchased by a funeral home for $30,000. The vehicle will be used for five years and then replaced. If estimated salvage value will be $5000, what will be the amount of yearly depreciation using the straight-line method of depreciation for computation? – $5,000
A _____ is а hаrdwаre device that allоws several nоdes tо share one communication channel.
Land – This does not qualify as a current asset
Allowance for Doubtful Accounts is
A. closed at the end of the fiscal year.
B. an operating expense.
C. a contra asset account.
D. added to Accounts Receivable on the balance sheet. – C

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