Q&A Archive

Q&A Archive (1,122)

1. How do you record the sale of land?
2. What is an implicit interest rate?
3. What does arms length transaction mean?
4. Is rent expense a period cost or a product cost?
5. What is the effective interest rate?
6. Is there a difference between work-in-process and work-in-progress?
7. Why Does Inventory Get Reported on Some Income Statements?
8. Why not use Sales in the Inventory Turnover Ratio?
9. What is a T-account?
10. Are undeposited checks reported as cash?
11. What is the purpose of depreciation?
12. What is the difference between bad debt and doubtful debt?
13. How is the material usage variance account reported on the financial statements?
14. What does the term arrears mean in accounting?
15. What is the difference between Notes Payable and Accounts Payable?
16. Why is Interest Expense Included in the Operating Activities Section of the Cash Flow Statement?
17. How do you determine the fixed portion of overhead cost?
18. Where do you account for payroll taxes on the income statement?
19. What is the meaning of fixed overhead absorbed?
20. Are retained earnings an asset?
21. How do you calculate the average balance in accounts receivable?
22. What is the monetary unit assumption?
23. What is the difference between book depreciation and tax depreciation?
24. What is the difference between a cost and an expense?
25. What is the difference between Social Security and Medicare payroll taxes?
26. What is a deferred expense?
27. Are transportation-in costs part of the cost of goods sold?
28. What are some examples of financing activities on the cash flow statement?
29. Is advertising an asset or an expense?
30. What is the accounting equation?
31. What does the direct labor efficiency variance tell us?
32. What is the difference between adjusting entries and closing entries?
33. What are LIFO layers?
34. What does crossfoot mean?
35. What is the proper accounting for supplies?
36. What is the carrying amount?
37. What is a contra revenue account?
38. What is the gross profit method?
39. What is the significance of FOB Shipping Point and FOB Destination?
40. Is depreciation expense an administrative expense?
41. Why is a negative cash balance reported as a liability?
42. What are mixed costs?
43. What does Accumulated Depreciation tell us?
44. What is the conservatism principle?
45. What is the purpose of the Allowance for Doubtful Accounts?
46. How do you calculate Return on Capital Employed (ROCE)?
47. Which accounts normally have debit balances?
48. What is a deferral?
49. What is book value?
50. Is a security deposit for a rental agreement recorded in a liability account?