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29 Cards in this Set
- Front
- Back
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Cash |
BS - A
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Salaries Expense |
IS - E
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Equipment |
BS - A
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Accounts Payable |
BS - L
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Membership fees earned |
IS - R
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Capital Stock |
BS - SE
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Accounts receivable |
BS - A
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Buildings |
BS - A
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Advertising expense |
IS - E
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Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE) item
Retained Earnings |
BS - SE
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Asset or Liability?
Office Equipment |
Asset
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Revenue or Expense?
Ticket Sales |
Revenue
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Revenue or Expense?
Concessions Revenue |
Revenue
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Revenue or Expense?
Rent Expense -- Movies |
Expense
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Revenue or Expense?
Cost of concessions sold |
Expense
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Revenue or Expense?
Advertising |
Expense
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Revenue or Expense?
Salaries and Wages |
Expense
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Revenue or Expense?
Gas, Water, and Electricity |
Expense
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Asset or Liability?
Furniture and Fixtures |
Asset
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Asset or Liability?
Land |
Asset
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Asset or Liability?
Projection equipment |
Asset
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Asset or Liability?
Notes Payable |
Liability
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What makes a business a good candidate for an investment?
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Operating at a profit and paying dividends
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What other information should you have before making an investment in a company?
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Statement of cash flows, current market price of stock, competitors, general outlook of the industry, age of various long-term assets, and due date of the note payable
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Should have separated his personal affairs from those of the business.
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Economic entity
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Should have recorded the new equipment at the amount paid to acquire it, not its list price.
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Cost principle
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Instead, the cost of the tools and the equipment should be depreciated over their useful lives.
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Matching principle
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Asset or Liability?
Rent Deposit |
Asset
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Asset or Liability?
Tools |
Asset
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