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Depreciation
COGS
Financial Statements
Accounts Receivable
Misc 2
100

Name one method of depreciation

straight line, double declining balance, units of production

100
What is COGS?

to the direct costs of producing the goods sold by a company

100

What are the components of the balance sheet?

Assets, liabilities and equity

100

Is accounts receivable a natural debit or credit balance

debit

100

In a t account, what side do the debits go on

left

200

What is the remaining value of a fully depreciated value called?

salvage value

200

What is the LIFO method?

uses the most recently purchased inventory first

200

What are the two methods of accounting?

one states with A one starts with C

Accrual and cash
200

Which of the following is true?

  1. Accounts receivable are found in the current asset section of a balance sheet.
  2. Accounts receivable increase by credits.
  3. Accounts receivable are generated when a customer makes payments.
  4. Accounts receivable become more valuable over time

Accounts receivable are found in the current asset section of a balance sheet.

200

What would be the journal entry for purchasing $200 of supplies on credit?

Debit Supplies

    Credit Accounts Payable

300

If an asset costs $10,000 and has a 5 year life and no salvage value, what is the depreciation per year using straight line depreciation

2000

300

What is the FIFO method

uses the oldest inventory first

300

What are the components of the income statement?

Revenues, expenses and net income

300

What is the name of the account we write off accounts receivable to that we don't think we will collect?

Bad debt expense

300
What is unearned revenue?

When we receive payment for services we did not preform. its a liability

400

If an assets costs $10,000 and has a $2000 salvage value and 5 year life, what is the annual depreciation using straight line

$1,600

400

What are 4 methods of accounting for COGS?

FIFO, LIFO, Weighted Average, Direct

400

Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of accounting?

Adjusting, closing, reversing?

Adjusting

400

What is the name of the reserve account we use for creating an allowance for accounts receivable we don't think we will collect

Allowance for doubtful accounts

400

What accounts are closed at the end of the accounting period?

temporary

500

An asset's useful life is the same as its physical life?

NO

500

How do you calculate gross profit?

Sales - COGS

500

Does the heading of a balance sheet indicate a period of time or a point in time?

Point in time

500

What is the journal entry to record an allowance for accounts receivable we don't think we will collect

Dr. Bad Debts

  Cr. Allowance for doubtful accounts

500

What is the name of the account we use when preparing closing entries? the "imaginary account?

income summary