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Acccounting
Financials
Behave/Perform
Adjustments
Rules
100
The common characteristic possessed by all assets.
What is future economic benefit?
100
Retained earnings at the beginning of the period plus net income minus dividends.
What is ending retained earnings?
100
Declaring a cash dividend will ____________.
What is a decrease retained earnings.
100
If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed.
What is debit unearned revenue and credit revenue earned?
100
Order in which assets are expected to be converted into cash.
What is liquidity?
200
Debts and obligations of a business.
What are liabilities?
200
The activity of buying machinery needed to operate a business.
What is an investing activity?
200
The best indicator of a company's future performance.
What is income from operations?
200
Revenues and expenses are recognized in the period they occur rather than in the period in which cash is paid or received.
What is the accrual basis of accounting?
200
The revenue recognition principle dictates that revenue should be recognized in the accounting records.
What is when it is earned?
300
In periods of rising prices, the inventory method that generally results in the lowest net income figure?
What the LIFO method?
300
Liabilities are classified on balance sheets two ways.
What are current and long-term?
300
The MAXIMUM amount of stock that may be issued according to the corporation's charter.
What are authorized shares?
300
Jounalized because many transactions affect more than one time period
What are adjustments?
300
Record expenses with revenues.
What is the matching principle?
400
The interest on a $4,000, 10%, 1-year note receivable is __________________.
What is $400?
400
Long-term creditors are usually MOST interested in evaluating ___________________.
What is solvency?
400
A successful discount retail store such as Walmart would probably have _________________.
What is a high inventory turnover?
400
Needed for the computation of depreciation.
What are cost, salvage value, and estimated useful life?
400
The matching rule relates to credit losses by stating that bad debt expense should be recorded in the ______.
What is period of the sale?
500
Carpino Company purchased equipment and these costs were incurred: Cash price $60,000; Sales taxes 3,000; Insurance during transit $500; Installation and testing $1,000;Total costs $64,500. The amount recorded as the cost of the equipment.
What is $64,500?
500
If the market rate of interest is greater than the bond’s contractual rate of interest, bonds will sell at a _________.
What is a discount?
500
Has no relationship with market value and is often immaterial in amount.
What is the par value of common stock?
500
Revenues > Expenses
What is net income?
500
Recording depreciation expense each period is necessary in accordance with rule.
What is the cost principle?