Terms
The process of transferring information from the Journal to the Ledger
Posting
The order in which current assets are listed, on a classified balance sheet
Liquidity
What is the term for the allocation of an intangible assets cost to future periods?
Amortization
What are the four basic Financial Reports found in an Annual Report?
Income Statement
Statement of Owners Equity
Balance Sheet
Statement of Cash Flow
This country gifted the Statue of Liberty to the United States
France
The name of the organization that establishes G.A.A.P. in the U.S.
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”?
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?
Seeker
Name one Contra-Asset account we have studied this semester.
1. Allowance for Bad Debt
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 covered in this course?
Straight-line depreciation
Units-of-Production depreciation
Double-declining balance
What are the total 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 2 years 5,000
Current Assets: $4,600
Cash $ 200
A/R 400
Inventory 3,000
Prepaid Rent 1,000
In NFL's 2023 regular season, which QB had the highest passing yards?
Tua Tagovailoa
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 NI is Understated.
A company has net sales of $ 100,000 for the year.
At year end, before any Adjustment is made, the Allowance for Bad Debt Account has a credit balance of $ 5,000. If the company estimates that 3% of net sales are uncollectible, what is the balance in the Allowance Account after the year end adjustment has been made?
$ 8,000 credit balance
Beginning balance $5,000 cr.
+ 3% x Net sales $3,000 cr.
= Ending Balance $ 8,000 cr.
What are two types 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?
The Vatican
During the closing process, we close four temporary accounts. Which accounts are closed?
Revenues
Expenses
Income Summary
Withdrawals
Using the following information, what is ending inventory in $ under 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
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
Annual Depreciation = ($35,000-5,000)/5 yr
= $6,000/yr
After 3 years it will have depreciated $18,000
Carrying Value = Cost – Acc. Dep =
$35,000 - $18,000 = $17,000
A reporting period consisting of 12 consecutive months
Fiscal Year
What is the name of the snowman in the Disney Movie "Frozen"?
Olaf