of the par value of the common shares issued. paid-in capital in excess of par – common stock This account records the amounts received by a corporation that were in excess of the par value of the common shares...
of the par value of the common shares issued. paid-in capital in excess of par – common stock This account records the amounts received by a corporation that were in excess of the par value of the common shares...
received the $4,000 from Kay. In January ABC will debit Cash, since cash was received. What account should ABC credit in the January entry? Accounts Receivable Right! In January ABC is collecting an account receivable....
amounts as favorable or unfavorable__________. 8. Management by __________ has its focus on the deviations from the expected amounts. 9. A budgeted financial statement is sometimes referred to as a pro-__________...
turnover, the numerator is net __________. 9. To compute the earnings per share (EPS), you must deduct the cumulative preferred stock’s __________ requirement from the corporation’s net income. 10. Earnings per...
Our Explanation of Activity Based Costing illustrates how manufacturing overhead costs for a product will differ when costs are allocated using only the number of machine hours, as opposed to being allocated using the...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
right from the beginning of the year. Join PRO to Track Progress Mark the Question as Read Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better at your current job Refresh your...
in the cost of the 10 units from 2021 remaining in inventory (10 X $20 = $200) and an additional layer being added in 2022. The 2022 LIFO layer will be the 2022 cost of 5 units (5 X $21 = $105). The LIFO inventory cost...
depreciation becomes equal to the asset’s cost, both amounts are removed from the accounting records even if the asset remains in use. Select... True False 6. Depreciation is recorded in the __________ journal. 7....
of $508,000 were more than the static budget of $500,000. The $12,000 difference between the two variances result from the flexible budget being increased by $12,000 to recognize that an additional 4,000 items had to be...
for $5,000. Without this accrual entry as of December 31, Sales Rep Company’s December financial statements will have the following problems: Its December income statement will report $0 in revenues that were earned...
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.
Our Explanation of Accounts Payable provides insights on the bill paying process in a large company. Included are discussions of the three-way match, early payment discounts, end of period accruals, and more.
the petty cash fund is an example of __________ internal control. Select... good poor 16. Having only one person responsible for disbursing money from petty cash is an example of __________ internal control. Select......
Our Explanation of Accounting Equation (or bookkeeping equation) illustrates how the double-entry system keeps the accounting equation in balance. You will see how the revenues and expenses on the income statement are...
value is not depreciated. However, it is common to assume that the salvage value will be $0. The depreciation method used for financial reporting is often different from the depreciation method used for U.S. income tax...
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...
(as a debit) on the left side of an account and will have an amount recorded (as a credit) on the right side of an account. Example 1. If a corporation borrows $10,000 from its bank, the corporation will debit the...
that this balance is different from the company’s general ledger’s Cash account balance of $7,000. Generally, neither balance is the correct amount of cash that should be reported on the company’s balance sheet....
. In the table from Example 1, you will see that at the end of 7 years the future value is $194,872. This is nearly double the initial deposit of $100,000. At 7.2 years, the amount will be extremely close to $200,000 or...
Checks received from customers that are not yet deposited U.S. Treasury note maturing in 8 months View Coaching A cash equivalent will generally have a maturity date of 3 months or less. Hence, the U.S. Treasury note...
that is to be debited. 6. What is the term that describes copying an amount from the general journal and entering it in the appropriate general ledger account? Select... Balancing Double-entry Journalizing Posting View...
. Comparative Financial Statements In order for the financial statements to be more useful, corporations prepare comparative financial statements. This means that in addition to the amounts for the current year, 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 Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
materials, direct labor, and manufacturing overhead. When actual costs differ from these, variances are reported. standard costs These are a manufacturer’s predetermined costs for direct materials, direct labor, and...
Our Explanation of Present Value of a Single Amount discusses the time value of money and the need to discount future amounts to the time of an investment or other transaction. The present value of 1 table is used to...
from high to low. Recap of NPV and IRR Both the net present value (NPV) and the internal rate of return (IRR) models are recommended because of the following: Both use all of the cash flows that occur during the entire...
Our Explanation of Present Value of a Single Amount discusses the time value of money and the need to discount future amounts to the time of an investment or other transaction. The present value of 1 table is used to...
Our Explanation of Improving Profits will assist you in focusing on the costs and revenues that are relevant (and ignoring those which are not relevant) for improving profits and eliminating losses. Examples of the...
Our Explanation of Present Value of a Single Amount discusses the time value of money and the need to discount future amounts to the time of an investment or other transaction. The present value of 1 table is used to...
a corporation borrows $50,000 from its bank? Select... Assets and liabilities will increase Liabilities will increase and stockholders' equity will decrease No effect on the accounting equation 11. If a corporation...
efficiency output price rate standard unfavorable usage variance 21. The standard costs are often derived from the company’s annual __________ or profit plan. Select... bill budgets efficiency output price rate...
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...
its plant assets ahead of its current assets. Mark as wrong Mark as right economic entity assumption This accounting guideline assumes that a sole proprietor’s business transactions can be accounted for separately...
Our Explanation of Bonds Payable covers the recording of bonds, the accrual of interest expense, and the amortization of the discount and premium on bonds payable. You gain an understanding on why the market value of...
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For the past 52 years, Harold Averkamp (CPA, MBA) has
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