Balance Sheet
What is treasury stock?
A company’s own stock that it has bought back
Are entries to add expenses such as Rent Expense debit or credit?
Credit
What are the three main segments of a Statement of Cash Flows?
Cash flows from operating activities.
Cash flows from financing activities.
Cash flows from investing activities.
Name all the continents
7. North America, South America, Africa, Antarctica, Australia (Oceania), Europe, and Asia.
Assets are usually reported at their book value, a value that usually changes every year, depending on their depreciation method. What is book value?
Original cost less accumulated depreciation
What happens on the income statement if inventory goes up by $10?
Nothing. This is a trick question. The only impact will be on the balance sheet and cash flow statement.
The purchase of a new delivery truck to be used in the business. Which of the following will be effected?:
1.Operating Activities
2. Investing Activities
3. Financing Activities
4. Supplemental
Investing. The new delivery truck to be used in the business is a long-term asset. Changes in long-term assets are shown in the investing activities section of the statement of cash flows. The purchase of a delivery truck will cause a decrease in cash from investing activities.
Who was FRMCC's president in spring 2016?
Dean Xu
The third line of the balance sheet at the end of the year should begin with "For the Year Ended". True or False? If False, what is the right statement?
False. The balance sheet reports amounts at a moment in time such as the last instant of an accounting period.
Under the accrual basis of accounting, when are expenses reported in the accounting period?
When Expense Matches The Revenues Or Is Used Up
Assuming these are the only facts, what amount will the corporation report as the Cash Provided by Operating Activities on the cash flow statement?
Net Income: $200,000
Depreciation expense: 30,000
Gain on sale of truck: 5,000
Proceeds from sale of truck: 8,000
Decrease in accounts receivable: 10,000
$200,000 + 30,000 - 5,000 + 10,000
Is brand equity reflected on the financial statements? If so, where?
Yes; intangible assets (balance sheet).
ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. The service was billed at the agreed upon amount of $3,500. ABC Co. debited Accounts Receivable for $3,500 and credited Service Revenue for $3,500. The effect of this entry on the balance sheet of ABC is to increase assets by $3,500 and to?
Increase Owner's (Stockholders') Equity By $3,500. The credit to the income statement account Service Revenues will have the effect of increasing owner's/stockholders' equity.
If a company's stock is publicly traded, is it a requirement that the earnings per share appear on the income statement?
Yes, the earnings per share must appear on the income statement if a corporation's stock is publicly traded.
How do you calculate a firm's free cash flows?
EBIT(1-t) + D&A - CapEx - change in working capital
What is the name of the great English scientist, who worked initially as an assistant to Sir Humphry Davy, and was then commemorated on the Bank of England's £20 note from 1991 to 2001?
It's Michael Faraday! A key figure in the development of electromagnetism and chemistry.