. Under the accrual basis of accounting, owner’s equity is increased by Select... A bank loan Collecting a receivable Providing a service For each of the accounts in items 29 - 39, indicate which type of balance you...
. Under the accrual basis of accounting, owner’s equity is increased by Select... A bank loan Collecting a receivable Providing a service For each of the accounts in items 29 - 39, indicate which type of balance you...
Our Explanation of Chart of Accounts shows how a typical chart of accounts is organized and examples of possible account numbering. It concludes with a quick review of debits and credits.
services on credit. Select... True False 27. Under accrual accounting, which of the following is an expense of the current accounting period? Select... Interest on an existing loan even though it will not be paid until...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
on the left side of the accounting equation: Purchase of New Machine with Cash and a Loan. The company buys a new machine for $20,000 by paying $12,000 in cash and signing a promissory note for the remaining $8,000....
a bank loan Providing $100,000 of services on credit (with the cash to be received later) 29. The amount reported as stockholders’ equity should be adjusted at the end of the year so that it is equal to the...
by a sole proprietor is reported on the income statement. Select... True False 8. Sales taxes collected from customers should be reported on the income statement as part of revenues. Select... True False 9. If a company...
the following information to answer questions 24 – 29: A company borrowed $100,000 on December 1 by signing a six-month note that specifies interest at an annual percentage rate (APR) of 12%. No interest or principal...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
as __________ expenditures. 12. When using the double-declining-balance method of depreciation, the estimated __________ __________ is not considered when calculating the depreciation for the early years of the...
of a plant-wide rate will be more equitable than the use of departmental rates for allocating manufacturing overhead. True Wrong. False Right! 13. Manufacturing overhead costs are also known as indirect manufacturing...
to an annual percentage rate closest to __________. 2% Wrong. 24% Wrong. 36% Right! [(20 days early and 2%) both x 18 = 360 days and 36%] 72% Wrong. 15. The Internal Revenue Service form to be issued for amounts paid to...
the employee worked four 8-hour days and one 10-hour day. Assuming that overtime is paid at a rate of time and one-half, the employee’s total gross pay for the week is $__________. 8. The amount of each employee’s...
period? Select... 30 days 36 days 40 days 14. A retailer had sales for the year of $750,000 with a cost of goods sold of $600,000. During the year its inventory rose at a constant rate moving from $140,000 at the...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
Coaching The company is earning interest at the rate of $1,000 per month ($100,000 X 12% X 1/12) on the loan it made to a supplier. Therefore as of December 31, the company should record an adjusting entry to...
and the principal portion is $625. When recording the payment, which of the following will be included as a debit? Select... Mortgage Loan Payable $625 Mortgage Loan Payable $1,000 Mortgage Payment Expense $1,000 View...
is reported as a liability since the store has received the $10,000 and it has an obligation to provide the goods or services. 20. A company’s 15-year mortgage loan payable requires monthly payments. How should the...
Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income...
Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general...
one year of the balance sheet date. An example is the equipment used in a business. Mark as wrong Mark as right fixed assets (or) property, plant and equipment This noncurrent section of the balance sheet reports the...
is usually a fixed, stated amount. preferred stock This class of a corporation’s capital stock receives its dividends ahead of the common stock. Its dividend is usually a fixed, stated amount. Mark as wrong Mark as...
as right fixed assets (or) plant assets This name is often used when referring to the tangible, noncurrent assets that are used in a business and (except for land) will be depreciated over their useful life. fixed...
that has a specified dividend rate and the owners generally do not participate in the growth of the corporation is __________ stock. 9. When a corporation declares a cash dividend, it credits the current liability...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
that is to be done in the following month. The deposit will be reported on CentCorp’s December financial statements as __________. Select... revenue a liability neither revenue nor a liability 16. A company has a loan...
will be paid quarterly, with the first payment due on March 1. What should the corporation report on its income statement for December? Nothing Wrong. The corporation is incurring (having) interest expense every day...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
for a deposited check that was not paid by the bank on which it was drawn (for example, an NSF check or a check drawn on a closed bank account) Deduct: check printing charge Deduct: automatic loan payment Add:...
Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general...
Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income...
Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
. Therefore, the decrease in accounts payable will be shown on the SCF as a negative adjustment to the net income that appears in the operating activities section of the SCF. 18. When the current liability Loan Payable...
, Stockholders' Equity will decrease by an entry to Retained Earnings or to Dividends. No Effect Wrong. 4. The company receives cash from a bank loan. Assets Increase Right! The company's asset account Cash...
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For the past 52 years, Harold Averkamp (CPA, MBA) has
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