Definitions
Corporations
Acronyms
Dollars & Cents
It's An Accrual World
100
An accounting concept that assumes a business will continue operating for an indefinite period of time.
What is going concern concept?
100
Stock issued by a corporation with preference rights such as a preference to dividends.
What is preferred stock?
100
SOX
What is Sarbanes-Oxley Act of 2002?
100
An accounting concept requiring that economic data be recorded in dollars.
What is unit of measure concept?
100
Items initially recorded as assets but expected to become expenses over time or through the normal operations of the business.
What are prepaid expenses?
200
Assets = Liabilities + Stockholders' Equity
What is the accounting equation?
200
A stock that a corporation has issued and then reacquired.
What is treasury stock?
200
EFT
What is electronic funds transfer?
200
If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders' equity is?
What is $8,000?
200
Items that are initially recorded as liabilities but are expected to become revenues over time or through the normal operations of the business.
What are unearned revenues?
300
The excess of revenues of over expenses.
What is net income?
300
A cash distribution of earnings by a corporation to its shareholders.
What is a cash dividend?
300
LIFO
What is last in, first out?
300
If revenue was $45,000, expenses were $37,500, and dividends were $10,000, the amount of net income or net loss would be?
What is $7,500 net income?
300
If the supplies account indicated a balance of $2,250 before adjustment on May 31 and supplies on hand at May 31 totaled $950, the adjustment would be:
What is increase Supplies Expense, $1,300; decrease Supplies, $1,300?
400
Rules for the way financial statements should be prepared.
What is generally accepted accounting principles (GAAP)?
400
A profitability measure that reports the income earned by each share of common stock. (Net income - preferred dividends/# of common shares outstanding)
What is Earnings Per Share?
400
FASB
What is Financial Accounting Standards Board?
400
If total current assets is $1,116,000 and current liabilities are $360,000, what is working capital?
What is $756,000?
400
On January 24, 2010, Niche Consulting collected $5,700 it had billed its clients for services rendered on December 31, 2009. How would you record the January 24 transaction, using the accrual basis?
What is increase Cash, $5,700; decrease Accounts Receivable, $5,700?
500
A financial reporting rule requiring a firm that elects to use LIFO inventory valuation for tax purposes to also use LIFO for external financial reporting.
What is the LIFO conformity rule?
500
A corporation has issued 25,000 shares of $100 par common stock and holds 3,000 of these shares as treasury stock. If the corporation declares a $2 per share cash dividend, what amount will be recorded as cash dividends?
What is $44,000?
500
MACRS
What is Modified Accelerated Cost Recovery System?
500
A business issued a $5,000, 60-day, 12% note to the bank. The amount due at maturity is:
What is $5,100?
500
Salaries/wages owed to employees at the end of an accounting period that have not been paid or interest owed on loans that have not been paid.
What are accrued expenses?
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