Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
21 Cards in this Set
- Front
- Back
|
What are some examples of cash flows from an operating activity? |
Income Statement, Net Income, Cash, Sales Revenue, Utilities Expense, Accounts Recieveable, Accounts Payable |
|
|
What are some examples of cash flows from an investing activity? |
Building, Land, and Equipment |
|
|
What are some examples of cash flows from a financing activity? |
Borrow Money, Sell Stock, Repay Debt |
|
|
In preparing a statement of cash flows under the indirect method how is an increase to accounts recieveable reported and how is an increase to accounts payable recorded? |
Debit Accounts Recieveable Credit Revenue and Decrease Accounts Recieveable, Debit Expense Credit Accounts Payable and Add Accounts Payable |
|
|
When Treasury Stock is purchased, what is the effect on assets and stockholders' equity? |
It decreases both. |
|
|
What does the matching principal state? |
It states that an expense must be recorded in the same accounting period. |
|
|
What does Retained Earnings represent? |
The earnings retained in the corporation - earnings not paid out as dividends in stockholders. |
|
|
Authorized stock is... |
Shares available to sell (issued and unissued) |
|
|
Issued stock is... |
Shares actually sold (includes treasury stock) |
|
|
Outstanding stock is... |
Shares held by investors (excludes treasury stock) |
|
|
Air France collected cash on September 14 from the sale of a ticket to a customer on March 26. The flight took place on August 15. According to the revenue recognition principal, in which month should Air France have recognized this revenue? |
August, the month the goods or services are provided to a customer |
|
|
What is the primary purpose for issuing large stock dividends and stock splits? |
To lower the trading price of stock to a more acceptable trading range, making it attractive to a large amount of potential users. |
|
|
What entries are made to record cash dividends on the declaration date? |
Debit Retained Earnings, Credit Dividends Payable |
|
|
What entries are made to record cash dividends on the record date? |
No recordings on a record date. |
|
|
What entries are made to record cash dividends on the payment date? |
Debit Dividends Payable, Credit Cash |
|
|
What is the basic accounting equation? |
A=L+SE |
|
|
What are the advantages of the corporate form of business? |
Largest dollar amount, Easy to transfer ownership, Limited Liability, Easier to raise capital, More paperwork, Double Taxation, Pay dividends not expense |
|
|
How is treasury stock normally reported? |
A contra equity, or negative amount, because treasury stock reduces total stockholders equity. |
|
|
What is the primary purpose of financial accounting? |
To measure the activities of the community and communicate those measurements to others. |
|
|
What is the first preference to preferred stock has over common stock? |
Preferred stockholders usually have first rights to a specific amount of dividends. If the board of directors declares dividends, preferred stock holders recieve the designated dividend before common shareholders recieve any. |
|
|
What is the second preference to preferred stock has over common stock? |
Preferred stockholders recieve prefrence over common stockholders in the distribution of assets in the event the corporation is dissolved. |
