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11 Cards in this Set
- Front
- Back
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The journal entry to record the borrowing of cash and signing of a note payable involves
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Debit cash and Credit Note Payable
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Which of the following is most likely an accrued liability?
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Interest
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A prepaid expense is an expense
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Paid but not yet incurred
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The Esquire Clothing Company borrowed a sum of cash on October 1, 2009, and signed a note payable. The annual interest rate was 12% and the company's year 2009 income statement reported income expense of $1,260 related to this note. What was the amount borrowed?
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$42,000
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Which of the following adjusting entries creates a decrease in assets?
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Recording of depreciation expense
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Which of the following adjusting entries creates an increase in liabilities?
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Accruing unrecorded interest expense
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The process of providing financial information to external decision makers is referred as
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Financial Accounting
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Financial statements generally include all of the following except
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Federal Income Tax Return
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Debt to Equity Formula
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Total liabilities / Shareholder's equity
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Times Interest Earned Formula
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Earnings before Interest and Taxes / Net Interest Expense
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Acid-Test Ratio Formula
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(cash+accounts receivable+short term investments)/(current liabilities)
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