acct 2301 example #66704

Managerial accounting provides information to

financial accounting provides information to

Financial reports are used by

Accounting provides information to users but it does not guarantee _______

5. Most businesses in the U.S. are

6. A corporation is an entity that is organized according to state or federal statutes and in which ownership is divided into

are recorded at cost, or transaction price

8. A corporation is most likely to obtain large amounts of resources by

9. The Financial Accounting Standards Board (FASB) is the dominant body in the development of ________ in the U.S

10. Outside of the U.S., the dominant body is

GAAP stands for

11. The accounting equation (Assets = Liabilities + Equity) can be re-written as

12. To calculated stockholder's equity

are reported when earned, or when a job is completed

2. The asset created by a business when it makes a sale on account is termed

3. The debt created by a business when it makes a purchase on account is referred to as an

decreases assets, decreases liabilities

5. The debit side of an account is the

account is said to have a debit balance when the amount of

3. A debit increases

is a listing of all the accounts used by a business

4. A _______ may signify a decrease in a liability account

process of initially recording a business transaction is called

The matching concept states that the revenues and related expenses should be reported in the

is recorded when the services are rendered without regard to when cash is received

are recorded when they are incurred, whether or not cash is paid

are needed to bring accounts up to date and match revenue and expense

requires the use of accrual accounting

is a deferred expense account (an asset).

= initial cost - accumulated depreciation

is a contra asset

is an expense

is a liability account, and therefore has a credit balance.

must be journalized and posted

is classified on the balance sheet as a current asset

= sales - cost of merchandise sold

buyer is responsible for shipping, the shipping terms are

seller is responsible for shipping, the shipping terms are

authorizes the purchase of inventory from an approved vendor

is made up of the oldest purchases when a company uses LIFO (Last-in, First-out).

When merchandise sold is assumed to be in the order in which the purchases were made, the company is using

5. The two most widely used methods for determining the cost of inventory are

5. The receivable that is usually evidenced by a formal, written instrument of credit is a

6. The two methods of accounting for uncollectible receivables are the

is equal to total estimated uncollectible accounts as of the end of the year.

is a contra asset and has a normal credit balance

be long-term in nature, and be used in the operations of a business

is a contra asset account

represents a fixed asset's estimated value at the time it is to be retired from service.

8. The most widely used deprecation method is the

= Initial cost - Residual Value

11. Statement of cash flows as three sections (in order):

disadvantage of a corporation is

mean that the corporation issuing the bonds has the right to redeem the bonds prior to the maturity

is equal to total estimated uncollectible accounts as of the end of the year.

are reported when earned, or when a job is completed