Long-Term Assets
What intangible asset is not amortized?
Goodwill or an indefinite trademark
Is Interest Payable an Asset, Liability, Stockholders' Equity, Expense or Revenue?
Liability
What are the three elements present in every fraud?
Motivation, Opportunity, and Rationalization
(Fraud Triangle)
What account is a result of a company collecting cash from a customer before providing the products or services to the customer?
Deferred Revenue
A Bank Reconciliation reconciles the company's cash account in the balance sheet with what?
The bank statement
What depreciation method has more depreciation recorded in the earlier years of use and less in the later years?
Double Declining-Balance Method
How would you record the inception of a note from a bank?
Debit Cash
Credit Notes Payable
What is a companies plans to safeguard the companies assets and improve the reliability and accuracy of accounting information?
Internal Controls
If Kellum Corp. has a $7 million liability at December 31, 2020, of which $1 million is payable in each of the next seven years. How much of this would be a current liability on the balance sheet?
$1 million
What would you add to the banks balance in a bank reconciliation?
Deposits in Transit
What account classification is Accumulated Depreciation?
Contra Asset
What would you have to record at the maturity of a note?
Debit Notes Payable
Debit Interest Expense
Debit any Interest Payable from previous years if you have any
Credit Cash
What was the Return on Assets (Net Income/Average Total Assets) during 2021?
Net Sales- $150,000; COGS- $60,000; Net Income- $90,000; Total Current Assets 2020- $40,000; Total Current Assets 2021- $45,000; Total Long-Term Assets 2020- $80,000; Total Long-Term Assets 2021- $90,000; Total Assets 2020- $120,000; Total Assets 2021- $135,000; Total Current Liabilities 2020- $20,000; Total Current Liabilities 2021- $19,000; Total Liabilities 2020- $22,000; Total Liabilities 2021- $20,000; Total Stockholders' Equity 2020- $98,000; Total Stockholders' Equity 2021- $115,000.
0.71
On April 20, you received $5,000 for a round trip flight to Paris, France. The departure date was April 15 and the return date was May 15. What would you record on April 20?
Debit Cash $5,000
Credit Service Revenue $2,500
Credit Deferred Revenue $2,500
What is imposed by the bank on the Company for providing routine services?
A Bank Service Fee
What accounts are used in a journal entry to record the sale of equipment that has been on the books for more than a year?
Cash, Accumulated Depreciation, Equipment, and a gain OR loss on the sale of equipment.
A company borrowed $70,000 from the bank with a 3 month, 9% note on March 1, 2020. How much interest would be recorded on May 31?
$1,575
What was the Current Ratio (Current Assets/Current Liabilities) during 2021?
Net Sales- $150,000; COGS- $60,000; Net Income- $90,000; Total Current Assets 2020- $40,000; Total Current Assets 2021- $45,000; Total Long-Term Assets 2020- $80,000; Total Long-Term Assets 2021- $90,000; Total Assets 2020- $120,000; Total Assets 2021- $135,000; Total Current Liabilities 2020- $20,000; Total Current Liabilities 2021- $19,000; Total Liabilities 2020- $22,000; Total Liabilities 2021- $20,000; Total Stockholders' Equity 2020- $98,000; Total Stockholders' Equity 2021- $115,000.
2.37
Who is responsible for paying Social Security, Medicare, unemployment tax, and possibly other contributions if applicable?
Employers
What would you record as an adjusting entry to record the collection of an NSF Check?
Debit Accounts Receivable and Credit Cash
Goundhog Inc. incurred the following costs associated with the purchase of a piece of land that it will use to rebuild an office building. Sale price of the land was $900,000; the sale of salvaged parts already on the land was $10,000; the demolition of the old building was $15,000; the ground breaking ceremony (food and supplies) was $4,000; and the land preparation and leveling cost $5,000. So what amount should be recorded for the purchase of the land?
$910,000
A company borrowed $30,000 from the bank with a 5 month, 14% note on October 1, 2020. How much interest would be recorded on December 31?
$1,050
What is it when two or more people act in coordination to circumvent internal controls?
Collusion
On April 20, you received $5,000 for a round trip flight to Paris, France. The departure date was April 15 and the return date was May 15. What would you record as an adjusting entry on April 30?
No Entry
A company incorrectly recorded a check of $3,550 that was used to purchase supplies. The bank correctly recorded the check at $350. What would the company record to adjust for this correction?
Debit Cash $3,200 and
Credit Supplies Expense $3,200