Chapter 1 - 3 (Exam One)

¡Supera tus tareas y exámenes ahora con Quizwiz!

The company's operating cycle is longer than one year

A company may properly classify an asset that provides benefits for 15 months as a current asset if

A debit is used to decrease which of the following accounts?

Accounts payable

Liquidity

An asset that can quickly be turned into cash has the characteristic of

Traditional Careers in public accounting

Auditors, Tax prep/planners, Business Consultants

Which financial statement reports a company's assets and liabilities

Balance Sheet

A credit is used to decrease which of the following accounts?

Cash

Which activities are part of the operating cycle

Collecting cash from customers, Buying goods and services, Paying cash to suppliers

Which of the following is possible for a particular business transaction?

Decrease assets; decrease liabilities

Cost of selling to customers

Expenses

Does not represent an external business transaction

Expiration of an insurance policy over time is not part of the

Which body has the primary responsibility for the establishment of generally accepted Accounting Principles

Financial Accounting Standards Board (FASB)

Which financial statement shoes a company's revenues and expenses

Income Statement

The adjusted trial balance typically is used to prepare which financial statements

Income statements, Balanca Sheet, Statement of SHE

Financial Accounting

Information measurements / Communication process

Cash Flows Statement

Investing, Financing, Operating

Obligation of the company

Liabilities

Financial Accounting

Measuring a company business activities and communicating those measurements to external parties

Transferring the debit and credit information from a journal to individual accounts in the general ledger is referred to as

Posting

A components/aspect of relevant accounting information

Predictive Value

On a classified balance sheet, long-term assets may be reported in these sub-categories

Property, plant, and equipment, Intangible assets, Long-term investments

Which step in the process of measuring external transactions causes an increase in total liabilities?

Purchasing salaries expense for the current month

Purchasing office supplies on account for $100 is recorded as

Supplies credit 100, Accounts Payable debit 100

Describes an important function of financial accounting

To support the efficient distribution of society's resources

Which of the following is true about a trial balance?

Total debit amounts should always equal total credit amounts.

Deferred Revenue

Which of the following current liabilities does not involve the future payment of cash

Long Term Assets

Which of the following would typically be the first long-term asset category reported on a classified balance sheet?


Conjuntos de estudio relacionados

Questions - OS Hardening & Virtualization

View Set

Establishing the Total Marketing

View Set