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Inventory
Purchase of Assets
Depreciation Accounting
Cost Allocation
Investment Classifications
100
A current asset whose ending balance should report the cost of the business' products waiting to be sold.
What is Inventory
100
"Things" that are owned by a company and that have future economic value that can be measured and expressed in dollars are called
What are Assets
100
Straight-line, Double-Declining Balance, and Units of Activity are all methods of
What is Depreciation
100
Other than an asset's cost, what else is necessary to determine the accounting periods that benefit from the purchase?
What is Service Life
100
Under SFAS No. 115, gains and losses for trading and available-for-sale equity securities that have a readily determinable fair value should be reported under which financial statement?
What is The G/L for trading security will be reported on income statement, while AFS security G/L will be reported on OCI.
200
Other than determining the amount of goods on hand by performing an actual count name one other way this can be done.
What is Perpetual records or estimating procedures
200
All long-term fixed assets can be depreciated except for this classification.
What is Land
200
The annual depreciation expense will be the same amount in most years when an asset is depreciated using this method.
What is Straight-line
200
The shortening of service life due to technological advances that cause an asset to become out of date or less desirable is referred to as
What is Obsolescence
200
What managerial intention plays in the accounting treatment of equity securities that have a readily determinable fair value under SFAS No. 115?
What is Management can choose which year to report more profit.
300
The inventory method that will more frequently result in the reporting of a lower taxable income.
What is LIFO, or Last in, First out
300
Cash, temporary investments, accounts receivable, inventory, prepaid insurance are all examples of:
What is Current assets (short-term assets)
300
Depreciation is a process of allocation, not
What is Valuation
300
As an asset is being depreciated, what is happening to the cost?
What is being expensed
300
Qtip owns 10% of interest in Maxey Co. and has no significant influence. Cost of the available-for-sale stock is $23,000. The fair value of the stock on12/31/2009 was $21,600, and on 12/31/2010 the fair value was $27,000. What income statement effect in 2010, if any, would the change in classification have for Qtip?
What is The net income will increase $4,000 if they reclassify the security category.
400
In a period of inflation, the inventory method that may cause an inflated net profit
What is FIFO, or First In, First Out
400
According to today's presentation and Chapter 9 of Financial Accounting, Theory and Analysis, what major role do assets play for companies and their investors?
What is the Sustainability of Earnings Process
400
When an asset that has been fully depreciated is removed, it causes a reduction in this category.
What is Accumulated Depreciation
400
The change in the discounted present value of the items of property, plant, and equipment is known as
What is Economic Depreciation
400
A proposed change in classification would result in the improper matching of market-value changes with accounting periods. How does this affect the accounting?
What is There is no matching for the gains and losses in the period when they are incurred.