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16 Cards in this Set
- Front
- Back
- 3rd side (hint)
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identify 4 significant noncash activity |
direct issuance of common stock to purchase assets direct issuance of debt to purchase assets conversion of bonds into common stock exchange of plant assets |
DDCE double dutch cooking equipment |
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what 2 tricky accounts belong in the operating section of the cashflow statement |
dividends receive interest paid & received |
dinosaurs invited Dividends paid comes straight out of retained earnings so it is a financing cash flow activity |
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In which activity (cashflow statement) would you categorize dividends paid/payable? |
Financing Activity |
Begins with letter F |
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what is an accrual revenue? |
revenue earned but not yet collected (accounts receivable) |
common in the service industry,eat first pay later, creates an A/R account |
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what is a deferred revenue? |
cash collected but revenue not yet earned (unearned revenue) |
occurs frequently in insurance industry, an unearned revenue is created,revenue is deferred even though cash is in hand. |
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What is an accrued expense? |
Expense incurred but not yet paid |
Water bill expensed in December but paid in January |
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What is a deferred expense? |
Cash paid but expense not incurred |
Rent on office equipment, advance payment of insurance coverage |
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Identify the measurement basis for PPE |
Historical cost & depreciation/amortization historical cost |
What method do you use to measure the value of PPE |
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Identify the measurement basis for receivables |
Net realizable value |
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Identify the measurement basis for inventory |
Lower of cost or market |
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Identify the measurement basis of marketable securities |
Market value |
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Identify the measurement basis of liabilities |
Present value |
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Identify the measurement basis of owners equity |
Historical value of cash inflow and residual value |
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The current portion of a long term debt is categorized as |
Current |
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Which form of income is based on the net worth of owners equity? |
Accounting income |
Accounting income or economic income |
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Which form of income is based on the net worth of fair value of assets? |
Economic income |
Accounting or economic |
