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