ASSETS
What category of assets includes cash, accounts receivable, and inventory?
Current Assets
What account is used to describe the amount of money owed by a business to its suppliers or vendors for goods or services purchased on credit?
Accounts Payable
What is the journal entry to record the receipt of cash for services rendered?
Dr. Cash
Cr. Revenue
What does GAAP stand for?
Generally Accepted Accounting Principles
What account is debited when an entity sells goods on account?
Accounts Receivable
Give the journal entries for the purchase of Supplies on account for P5,000
Dr. Supplies P5,000
Cr. Accounts Payable P5,000
What term is used to describe the portion of equity that arises from the accumulated profits earned by a company and retained for reinvestment in the business?
Retained Earnings
What is the normal balance of account of Accumulated Depreciation?
Credit Balance
Give the journal entry for the purchase of Land for P1,000,000 cash
Dr. Land P1,000,000
Cr. Cash P1,000,000
Which among these is not a type of liability?
a. Contingent Liability
b. Current Liability
c. Long-term Liability
d. Conditional Liability
d. Conditional Liability
Firm ABC had operating profits of $100,000, taxes of $17,000, interest expense of $34,000, and preferred dividends of $5,000. What was the firm's net profit after taxes?
A) $66,000
B) $49,000
C) $44,000
D) $83,000
B) $49,000
This government agency has authority over the accounting and financial disclosures for companies whose shares of ownership are traded and sold to the public.
Securities and Exchange Commission (SEC)
This is defined as company's ability to convert assets to cash or acquire cash—through a loan or money in the bank—to pay its short-term obligations or liabilities
Liquidity
What type of liability represents amounts received in advance from customers for goods or services that have not yet been provided?
Unearned Revenues/Deferred Revenue
These are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.
Preferred Stock
This is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial reporting by corporations
Sarbanes-Oxley Act of 2002
A company recently acquired a new piece of machinery for $500,000. The machinery has an estimated useful life of 10 years and a residual value of $50,000. The company uses the straight-line method for depreciation. How much is the annual depreciation?
$45,000
Cash received from customers for goods or services that have not yet been provided. This represents an obligation to deliver goods or services in the future.
Unearned Revenue
This account represents shares of the company's own stock that it has repurchased from the open market or from shareholders.
Treasury Stock
Who is the father of accounting?
Luca Pacioli