Terms
The process of transferring information from the Journal to the Ledger.
What is Posting.
The order in which current assets are listed within a classified Balance Sheet.
What is liquidity.
What is the term for the allocation of an intangible assets cost to future periods?
What is Amortization?
What are the three basic Financial Reports found in a Company's Annual Report?
Income Statement
Balance Sheet
Statement of Cash Flows
This country gifted the Statue of Liberty to the United States.
Who is France?
The name of the organization that establishes GAAP in the U.S.
What is the FASB.
What is the formula to calculate Net Realizable Value?
Accounts Receivable – Allowance for Bad Debts.
What do you call an Assets' “Cost” less its “Accumulated Depreciation”?
What is Net Book Value?
Paid cash on account. Explain how this affects the accounting equation.
What is cash (asset) decreases and amount owed on account / trade payable (liability) decreases.
What position does Harry Potter play in Quidditch?
What is Seeker?
Name one Contra-Asset account we have studied this semester.
1. Allowance for Bad Debts.
2. Accumulated Depreciation.
In times of rising prices, what inventory method would companies use to minimize their income taxes ?
LIFO since it reports the highest COGS, and therefore the lowest Net Income.
What are the three depreciation methods that we discussed in this course?
Straight-line depreciation
Units-of-Production depreciation
Double-declining Balance depreciation
What is the total of Current Assets below?
Cash $ 200
Accounts Receivable, net 400
Inventory 3,000
Prepaid Insurance 1,000
Property, net 15,000
Accounts Payable 750
Note Receivable, due in two years 5,000
Current Assets are $4,600, calculation:
Cash $200
Accounts Receivable, net 400
Inventory 3,000
Prepaid Insurance 1,000
Who was the NFL MVP for the 2024 - 2025 Season?
Who is Josh Allen?
The company fails to accrue interest on a Note Receivable at year end. Will the error Overstate, Understate, or have No Effect on Net Income for the year.
Understate. The company failed to record both the Interest Income and the Interest Receivable. Because they failed to record the Interest income the Net Income is Understated.
A company has net sales of $100,000 for the year. At year end, before any adjustment is posted, the Allowance for Bad Debt Account has a credit balance of $5,000. If the company estimates that 3% of net sales are uncollectable, what is the balance in the Allowance Account after the year end adjustment has been made?
$8,000 credit balance, calculation:
Beginning balance $5,000 cr.
+ 3% x Net sales $3,000 cr.
= Ending Balance $8,000 cr.
What are two categories of Intangible Assets?
Patents
Trademarks
Goodwill
Given the following information, what is Cost of Goods Sold?
Inventory, January 1 $15,000
Inventory, December 31 16,000
Purchases 38,000
Beginning Inventory $15,000
+ Purchases 38,000
- Ending Inventory (16,000)
= Cost of Goods Sold $ 37,000
What is the smallest country in the world?
What is The Vatican?
During the closing process, we close four temporary accounts. Name the accounts which are closed?
Revenues,
Expenses,
Income Summary;
Withdrawals or Dividends.
Using the following information, what is ending inventory in dollars using FIFO?
Beginning Inventory 100 units @ $2.00
Purchase – May 200 units @ $1.50
Purchases – June 100 units @ $3.00
Ending inventory is 150 units.
$375.00, calculated:
FIFO will value the ending inventory at the last units purchased. The 150 units in ending inventory would be made up of:
100 units from June @ $3.00 = $300
50 units from May @ $1.50 = $75
A truck is purchased for $35,000. It has a five-year life and $5,000 residual value. Using the straight-line method, what is the truck’s carrying value after three years?
Answer $17,000, calculation:
Annual Depreciation = ($35,000-$5,000)/5 yr = $6,000/yr
After three years it will have depreciated $18,000
Carrying Value = Cost – Accumulated Depreciation $35,000 - $18,000 = $17,000
A reporting period consisting of 12 consecutive months.
What is a Fiscal Year?
What is the name of the snowman in the Disney Movie "Frozen"?
Who is Olaf?