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29 Cards in this Set
- Front
- Back
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2 entries for insurance
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prepaid insurance
cash insurance expesne prepaid insurance |
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income statement equation
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revenues-expenses=net income (loss)
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period cost vs product cost
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expenses vs expenses directly associated with manufacturing a product
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direct write off vs allowance method
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direct- write off bad debt when you find it bad
allowande- take estiamte of what you think is going to become bad debt |
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2 entries for bad debt expense
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bad debt expense
allowance for uncollectible accounts allowance for uncollectible accounts cash |
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ending inventory equation
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BY Inventory
+ purchases ----------- goods available -CGS ----------- EY inventory |
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which method does not factor in salavage value
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declining balance
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entry for selling stock
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debit cash
credit common stock/APIC |
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stockholders equity in a firm can be defined as a
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residual interest
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assets measure
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economic resources
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under accrual method, timing of revenue recognition is influenced by
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when the services or product are provided
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property, plant, equiptment refers to
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tangible, long lived assets used in a firms operations over a period of years and generally not aquired for sale
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revenues measure
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inflow of assets from selling good and proving services to customers
reduction of leabilities from selling goods and provind services to customers |
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a source of cash
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decrease in accounts recievable
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SOCF provides info about
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the relationship between operations and liquidity of a firm
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for us companies, how do gaap and income tax reporting compare of their traetment of uncollectible accounts
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gaap, income tax reporting require differnt treatmetns of uncollectible accounts
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if balance sheet shows same beggining and ebdning balance foe depreciable assets...
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there may have been investing activities
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revenues measure
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inflow of assets from selling good and proving services to customers
reduction of leabilities from selling goods and provind services to customers |
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a source of cash
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decrease in accounts recievable
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SOCF provides info about
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the relationship between operations and liquidity of a firm
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for us companies, how do gaap and income tax reporting compare of their traetment of uncollectible accounts
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gaap, income tax reporting require differnt treatmetns of uncollectible accounts
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if balance sheet shows same beggining and ebdning balance foe depreciable assets...
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there may have been investing activities
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recording bad debt...
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decreases income
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statement of cash flows intends to help finanicial users of financial statements
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evaluate liqudity, solvency and financial flexibility of a firm
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intangible assets are only capitalized when
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they are purchased via arms length transaction
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expendiure for repair and maintencence should be capitalized when
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it extends the life of the asset
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perpetual inventory system
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record increase in cost of sales and reduction in inventory when sale occurs
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which interest costs do you capatilize towards a building when constructing it
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building interest cots incurred during construction
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is goodwill an asset
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no
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