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24 Cards in this Set
- Front
- Back
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WHAT IS NET INCOME
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THE DIFFERENCE BETWEEN ALL OF THE REVENUES EARNED AND ALL OF THE EXPENSES INCURRED DURING THE ACCOUNTING PERIOD
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ONE OF THE BASIC CONCEPTS UNDERLYING THE USE OF ADJUSTMENTS FOR PREPAYMENTS AND ACCRUALS IS THE
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MATCHING PRINCIPAL
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BUYING A 3 YEAR INSURANCE POLLICY IS AN EXAMPLE OF A
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DEFERRAL
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UNDER THE ACCRUAL BASIS OF ACCOUNTING, WHEN ARE TRANSACTIONS RECORDED
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BEFORE CASH IS RECEIVED
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THE JOURNAL ENTRY THAT RECORDS THE ADJUSTING ENTRY FOR DEPRECIATION EXPENSE
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DEPRECIATION EXPENSE
ACCUMULATED DEPRECIATION |
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WHAT IS NET INCOME
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THE DIFFERENCE BETWEEN ALL OF THE REVENUES EARNED AND ALL OF THE EXPENSES INCURRED DURING THE ACCOUNTING PERIOD
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ONE OF THE BASIC CONCEPTS UNDERLYING THE USE OF ADJUSTMENTS FOR PREPAYMENTS AND ACCRUALS IS THE
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MATCHING PRINCIPAL
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BUYING A 3 YEAR INSURANCE POLLICY IS AN EXAMPLE OF A
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DEFERRAL
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UNDER THE ACCRUAL BASIS OF ACCOUNTING, WHEN ARE TRANSACTIONS RECORDED
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BEFORE CASH IS RECEIVED
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THE JOURNAL ENTRY THAT RECORDS THE ADJUSTING ENTRY FOR DEPRECIATION EXPENSE
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DEPRECIATION EXPENSE
ACCUMULATED DEPRECIATION |
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ACCRUED INTEREST EXPENSE REPRESENTS
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THE COST OF USING SOMEONE ELSES MONEY
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A COMPANY PROPERLY RECOGNIZES A SUPPLIES EXPENSE WHEN THE SUPPLIES ARE
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CONSUMED OR USED
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THE COST ALLOCATION PRINCIPLES OF DEPRECIATION ARE AN EXAMPLE OF THE
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MATCHING PRINCIPLE
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WHAT IS DEPRECIATION
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THE PROCESS OF ALLOCATING THE COST OF AN ASSET TO EXPENSE OVER THE COURSE OF ITS ESTIMATED USEFUL LIFE
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GENERALLY ALL OF THE FOLLOWING CAN BE PREPARED WITH INFO FROM THE TRIAL BALANCE
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STATEMENT OF RETAINED EARNINGS, BALANCE SHEET, INSOME STATEMENT
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IF A COMPANY FAILS TO MAKE AN ADJUSTING ENTRY TO ACRUE INTEREST ON A NOTE PAYABLE, WHAT HAPPENS
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EXPENSES WILL BE UNDERSTATED
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GROSS PROFIT IS CALCULATED BY SALES MINUS
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COST OF GOODS SOLD
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WHICH TERM INDICATES THAT THE BUYER WILL BE RESPONSIBLE FOR TRANSPORTATION CHARGES FOR GOODS PURCHASED
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FOB SHIPPING POINT
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SALES RETURNS AND ALLOWANCES IS CLASSIFIED AS A
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CONTRA REVENUE ACCOUNT
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USING A PERPETUAL INVENTORY STSTEM REQUIRES THAT EACH SALE BE RECORDED IN THE ACCOUNTING RECORDS IMMEDIATELY. IN ADDITION TO THE RECORD OF SALE, A COMP MUST ALSO MAKE WHICH OF THE FOLLOWING ENTRIES SIMULTANEOUSLY
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DEBIT COST OF GOODS SOLD AND CRUDIT MERCHANDISE INVENTORY
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WHAT ARE THE ITEMS THAT ARE INCLUDED IN THE SOCT OF INVENTORY FOR THE BUYER
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ACTUAL COST OF GOODS PURCHASED, COST OF INSURING THE GOODS DURING SHIPMENT, CHIPPING COSTS FOR GOODS SHIPPED FOB SHIPPING POINT
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WHICH INVENTORY COST FLOW ASSUMPTION WOULD PRODUCE THE LSWEST INVENTORY BAL
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LIFO
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WHICH INVENTORY COST FLOW ASSUMPTION WOULD PRODUCE THE LOWEST FOCST OF GOODS SOLD
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FIFO
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LIN THE LOWER OF COST OR MARKET (LCM) RULE, MARKET REFERS TO
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REPLACEMENT COST FOR THE INVENTORY
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