The business received 2100 cash from a customer on account
What is cash 2100 dr accounts receivable 2100 credit
100
Employees work monday through friday. The weekly payroll is $5,000 and is paid every Friday. June 30, 2008 falls on a thursday. The journal entry to accrue salary expense
What is salary expense 4,000 dr salary payable 4,000 cr
100
the current ratio
What is current assets/current liabilities
100
the study of percentage changes from year to year
What is horizontal analysis
100
inventory method that minimizes taxes
What is lifo
200
Pepsico wishes to speed up cash flow and therefore sells $100,000 of accounts receivable, receiving cash of $95,000. The entry to record the sale of the receivables
What is cash $95,000 dr Financing Expense $5000 dr Accounts Receivable $100,000 cr
200
On June 30, 2008, the unadjusted balance in the supplies account was $4,000. Supplies on hand on June 30,2008 is $1,000.
What is Supplies Expense $3,000 dr supplies $3,000 cr
200
acid test (quick) ratio
What is cash + st investments+net current receivable/current liabilities
200
shows the relationship of a financial statement item to its base
What is vertical analysis
200
if a business is having a bad year and management wants to report higher income and delays purchases of higher cost inventory
What is LIFO liquidation
300
The business paid cash dividends of $1500
What is dividends $1500 dr cash $1500 cr
300
A fedex sorting machine that cost $10,000 has a useful life of 5 years and residual value of $2,000 was purchased on January 1. Using straight line depreciation, the journal entry to record annual depreciation
What is depreciation expense $1600 dr accumulated depreciation-equipment $1600 cr
300
rate of return on total assets
What is net income+interest expense/average total assets
300
type of financial statement- each item is expressed as a percentage of the revenue amount
What is a common size income statement
300
special depreciation method used only for tax purposes
What is modified accelerated cost recovery system (macrs)
400
Suppose IHOP's common stock carried a par value of $10 per share. The entry for issuance of 6.2 million shares of stock at par
What is cash $62 M dr common stock $62 M cr
400
Starbucks has an $8,000 10% note payable to purchase inventory that is due in one year issued on Jan 1, 2009. Starbucks has a fiscal year end (FYE) of September 30. The entry to accrue interest expense at 10% for January through September.
What is interest expense $600 debit interest payable $600 cr $8000 *.10* 9/12
400
book value per share of common stock
What is total stockholders equity- preferred equity/number of shares of common stock outstanding
400
ratios to measure ability to sell inventory and collect receivables
What is inventory turnover, accounts receivable turnover, days sales in receivables
400
Pier I imports had pretax acounting income of $100 million on its income statement and taxable income of $80 million on its income tax return. The entry to record income tax expense with tax rate 40%
What is income tax expense $40 M dr income tax payable $32 M cr deferred tax liability $8 M cr
500
Southwest airlines issued $100,000 of 9% 5 year bonds when the market interest rate is 10%. The market price of the bonds drops, and Southwest receives $96,149 at issuance. The entry to issue the bonds
What is Cash 96,149 dr discount on bonds payable 3851 dr bonds payable 100,000 cr
500
Pier I imports paid $3,000 for inventory on September 26. By December 31, the inventory can be replaced for $2,000. The entry to report the inventory at LCM value from $3,000 to $2,000
What is cost of goods sold $1,000 dr inventory $1,000 cr
500
economic value added
What is net income+interest expense-capital charge
500
rations to analyze stock investments
What is price/earnings/ratio, dividend yield, and book value per share of common stock
500
the type of account when income tax payable exceeds income tax expense