VYC1 - Weak areas

Which account balance is entered in the balance sheet columns from the adjusted trial balance?

Accounts receivable

What determines the frequency of deposits of federal income taxes withheld and Social Security andMedicare taxes?

Amount owed by the firm

__________ is not immediate and occurs over longer periods of time, such as letters, emails, or even text messages at times.

Asynchronous communication

Stevie and Kate are new business owners trying to decide on a price for widgets. Stevie decided widgets should be $40. Which type of decision-making style did Stevie use?

Autocratic

When decisions are made at the top

Autocratic decision making

Which financial statement(s) contain the information needed to compute the current ratio?

Balance sheet

Which account appears on a post-closing trial balance?

Capital stock

_______ present the same company's financial statements for one or two successive periods in side-by-side columns.

Comparative financial statements

A small law firm has two hourly employees who are paid every two weeks. Each biweekly payroll has a total salary expense of $4,000 and covers eight working days. The firm's accountant is completing the bookkeeping for the end of the month of March, which includes four days of the typical biweekly pay period.What adjustment below will need to be entered on the books for the biweekly payroll accrual at the end of the month of March?

Debit salary expense for $2,000 Half of the biweekly payroll expense should be recorded (accrued) at the end of March: debit Salary Expense 2,000 and credit Salary Payable 2,000.

A company purchases insurance on 20XX July 1 for $4,800 for a 24-month period. What adjusting entry would be recorded on December 31 of the same year?

Debit that accounts Expense Account and Credit Prepaid Account

In regards to Unearned revenue: It is a liability until the company renders the service; then the unearned revenue becomes earned revenue. How does the accountant record this?

Debiting Unearned Revenue and crediting Earned Revenues

Mindy owns a small accounting firm that is considering increasing their prices for some services. She calls the entire staff of 10 accountants to vote on which services should make price changes. Which type of decision-making style is Mindy using?

Democratic

Which analysis uses accounting data from more than one period to detect changes in a company's performance and highlights trends?

Horizontal analysis

Which financial statement(s) contain the information needed to compute return on sales?

Income statement

Which financial statement(s) contain the information needed to compute return on sales?

Income statements

What does horizontal analysis evaluate?

Increases or decreases in financial statement information over a period of time

Which concept is measured by the current ratio?

Liquidity

What would an accountant debit in order to record the purchase of machinery made using a long-term loan?

Machinery

Assume you are the manager of the design department. During a leadership meeting, the CEO has given each manager 30 days to develop a plan to cut their departmental costs by 3%. You know your job is on the line if you cannot make the cut. Which decision-making style is best suited for this situation?

Participatory

Which method is used when calculating uncollectible accounts expense using the income statementapproach?

Percentage of net credit sales

___________ is the skill of being aware of our thoughts, emotions, and values from moment to moment.

Self-confidence

_______ include asking yourself if the speaker is making a feasible argument, whether the evidence is credible and relevant, and if the pros and cons are being presented.

Strategies for evaluating content

_______ include asking yourself do I need to take action on this information now or later and asking yourself what information you need to remember in order to take action.

Strategies for listening for details

__________ takes place in real-time, such as a conversation with a friend.

Synchronous communication

_________ are useful for comparing financial statements over several years because they disclose changes and trends occurring through time.

Trend percentages

While listening to a presentation about the company's financial status, you ask yourself how you will explain this to your team. This is a strategy that supports which listening style or intention?

Understanding the big picture

__________ is a liability until the company renders the service.

Unearned revenue

_______ analysis is especially helpful in analyzing income statement data such as the percentage of the cost of goods sold to sales.

Vertical

_________, percentages of single items to an aggregate total, consists of the study of a single financial statement in which each item is expressed as a percentage of a significant total such as sales.

Vertical analysis

Assume a company owes its employees' salaries not yet paid. How does the accountant records this transaction?

a liability and an expense

The________ recognizes revenues when sales are made, or services are performed, regardless of when cash is received.

accrual basis of accounting

written communication is almost entirely __________

asynchronous

When a company empowered managers to make decisions is a form of what type of decisions making?

autocratic

One of the results of involving stakeholders in a decision is increased

buy-in.

The __________ recognizes revenues when cash is received and recognizes expenses when cash is paid out.

cash basis of accounting

This decision-making process requires a 100 % buy-in by all parties.

consensus based

Buy-in is a critical aspect of making a(n) _____ decision.

consensus-based

When cross-functional teams are consulted in making a decision for the company that will affect all departments of the company.

consensus-based decisions

A corporation had not yet received the monthly electric bill, so it decides to accrue an estimate of $1,000.What would appear in the appropriate journal entry?

credit to cash

A firm sells a truck to a customer for $35,000, and the customer is required to pay for the vehicle within 90days.How is this purchase entered on the firm's accounts receivable ledger?

debit

The entry to record a prepaid asset is a __________

debit to that Asset account and credit to Cash or that accounts Accounts Payable

Assume a company owes its employees' salaries not yet paid. Which accounts are debited and credited?

debiting that account Expenses and crediting that account Payables

Decision making is decided by a majority vote.

democratic decision-making process

When a decision needs to be made on a smaller scale so that the business can solve the issue and move on to bigger things. This decision-making process is an example of _______

democratic style

What is one purpose of using a metric after a decision has been communicated and executed?

evaluate the decision compared to the original goal

In regards to deferred items: assets are moved to the corresponding ________

expense account

The matching principle requires that ___________

expenses incurred be deducted from the revenues

When it comes to communicating accounting information, it is usually_________________

formal, written and asynchronous

Adjusting entries transfers funds _______

from an asset account to an expense account

What should you try to balance when reducing decision-making risk?

gathering information and time

The calculation of dollar changes or percentage changes in the statement items or totals is ____________. This analysis detects changes in a company's performance and highlights trends.

horizontal analysis

Adjusting entries have a dual purpose of showing that the revenue, expenses, assets, and liabilities are correct Which 2 reports or statements are used to do this?

income statement and balance sheet

Vertical analysis is especially helpful in analyzing _________ such as the percentage of cost of goods sold to sales.

income statement data

In a state of ambiguity where the outcomes are highly predictable, you need

little incremental input.

A Consensus-Based decision-making style should be used for _____ decisions.

low urgency

The company wants to increase prices the meeting is held with the sales team this is an example of what kind of decision-making process?

participatory

When decisions are made with input from the people who are going to be impacted by the final decision.

participatory decision making

In situations where substantial risk is involved, and the decision is important, involving other stakeholders in the decision will ________

reduce the risk

In regards to deferred items: liabilities are moved to the corresponding ________

revenue account

Participatory decision-making reduces the _____ of the decision.

risk

A Democratic decision-making style is best used for low _____ and low to medium _____ decisions.

risk; urgency

It is important to remember that the adjusting entry, transferring an amount from an asset account to an expense account _________

should transfer only the asset amount that has expired

Trend percentages are _________ except that comparisons are made to a selected base year or period.

similar to horizontal analysis

spoken communication or speech is almost entirely _______.

synchronous

___________ method of accounting is unacceptable for preparing financial statements in accordance with GAAP.

the cash basis

___________ does not match expenses incurred and revenues earned,

the cash basis of accounting

Each adjusting entry has a dual purpose: (1) to make __________t report the proper revenue or expense (2) to make the balance sheet report the proper asset or liability

the income statement

Which report or statement is important when matching expenses and revenues?

the income statement

Why are adjusting entries made at the end of an accounting period or whenever financial statements are to be prepared?

to bring about a proper matching of revenues and expenses

What is the purpose of using the balance sheet when making adjustments?

to reflect the correct amount of assets and liabilities

How is the income statement used when entering adjustments?

to reflect the correct amount of revenue and expenses

The _________ is used to test the equality of debits and credits in the journalizing and posting process.

trial balance

In regards to Unearned revenue: It is a liability until the company renders the service; then the _____________.

unearned revenue becomes earned revenue

Leticia knows that the income statement she is preparing for her organization will be shared with investors who are not accounting professionals? What should Leticia do to ensure effective communication with the investors?

verbal discussions