accounting final review
What is not necessary in order for a corporation pay a cash dividend
Approval of stockholders
What is the largest number of common shares
Authorized shares
(T/F)Internal Users of accounting information include a company's stockholders
False
Internal User of accounting information
Managers who use accounting information to plan, organize, and run a business
Modern Definition of Accounting
The information system that iden
The right to receive money in the future id called a(n)
account receivable
The balance in Accumulated Depreciation represents the
amount charged to expense since the acquisition of the plant asset
In computing depreciation, salvage value is
an estimate of a plant asset's value at the end of its useful life
The cost of assets consumed or services used is also known as
an expense
Generally Accepted Accounting Principles (GAAP)
are accounting rules that are recognized as a general guide for financial reporting
Debts and obligations of a business are referred to as
liabilities
Modern definition of accounting
managers who use accounting information to plan, organize, and run a business
Expenditures to maintain the operation efficiency and expected productive life of a plant asset are
ordinary repairs
Interest expense would be classified on a multi-step income statement under the heading
other expenses and loses
The Board of directors of Bosco Co declared a cash dividend on Nov 15, 2017 to be paid on Dec 15, 2017 to stockholders owning the stock on Nov 30, 2017. Given these facts, the date of Nov 30, 2017 is called
record date
Gross profit equals the difference between
sales revenue and cost of goods sold
Inventory becomes part of cost of goods sold when a company
sells the inventory
The historical cost principle requires that when assets are acquired, they are recorded at
the amount paid to acquire them
The going concern assumption assumes that the business...
will remain in operation for the foreseeable future
Liabilities are generally classified on a balance sheet as
current liabilities and long-term liabilities
payments to stockholders are called
dividends
A current asset is...
expected to be converted to cash or used in the business within a relatively short period of time
On a classified balance sheet, companies usually list current assets
in the order of which they are expected to be converted into cash
Trademarks would appear in which balance sheet section
intangible assets
Treasury Stock is a(n)
contra stockholders' equity account
Depreciation is a process of
cost allocation
The periodicity assumption states that
the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared
