the term deferral best describes a situation in which
an expense is recognized before its paid for with cash
adjusting entries are typically prepared
at the end of the accounting period
When a deferral adjustment is made to a liability account, that liability becomes a(n):
expense
current liabilities are expected to be
fulfilled within one year
cash activity from the buying and selling of productive resources such as land, buildings, and equipment, are reported as cash flows from ___________ activities on the statement offish flows
investing
The net profit margin
measures how much profit from each dollar of revenue
which of the financial statements are included in adjusted trial balance
only balance sheet account are listed
A difference between debt financing and equity financing is that
only debt financing can be used to purchase assets
Puffin company began year with assets of $120,000 and liabilities of $90,000. During the year assets increase by $14,400 and Liabilities decreased by $10,800 What is the amount of Puffins stockholder equity at the beginning of the year?
30,000
the net income for year 1 was $20,000 and dividend of 12,000 were paid In year 2 net income of $34,000 and paid dividends of 5,000 end of year 1 --> total assets $150,000 end of year 2 --> total assets 240,000 what was the amounts of retained earning at the end of year 1?
8,000
which would be classified as a concurrent liability on the balance sheet at December 31, year 1
A notes payable due January 15, year 3
Who has first claim to a business's assets should the company go out of business?
Creditors
which of the following is the journal entry that will be used to record "made payments to suppliers on account $5,000"
Debit cash and credit account payable for $5,000
Typical business activities needed before a business can start selling good and/or service to customers include
Financing and investing activities
what is the main goal GAAP
To ensure that the financial information produced by companies is useful to present and potential investors and other parties in making decisions
account receivable are
amount the company expects to collect for previous credit sales
what best describes when accrual adjustment is required
an expense has been incurred but not yet paid in cash
The Sarbanes Oxley act is a set of laws established to
strengthen corporate reporting in the United States
if a company reports a negative dollar amount under cash flows from investigating activities, a possible explanation is that
the market value of its stock went down
What does the current ratio measure?
whether current assets are sufficient to pay current liabilities
