Accounting Exam 3

Ace your homework & exams now with Quizwiz!

DSO equation

average net receivables/ average daily sales

what type of account in discount on bonds payable and what is its normal balance?

contra liability, debit

accounts payable turnover equation

costs of goods sold/ average accounts payable

working capital

current assets - current liabilities

quality of earnings suggests that

income from continuing operations is of more relevant predictor of future performance than income from one- time transactions

what kind of account is unearned revenue

liability account

which of the following is a characteristic of a corporation?

limited liability of stockholders

allowance for bad debts

not on estimated liability

the sale of inventory for cash is reported on the statement of cash flows under

operating activities

referred stock is least likely to have which of the following characteristics?

preference as to voting

min purpose of the statement of stockholders equity is to report

reasons for changes in the equity accounts

the main purpose of the statement of stockholders equity is to report

reasons for changes in the equity accounts

paid-in capital portion of stockholders equity does not include

retained earnings

what is most closely related to prior-period adjustments

retained earnings

when treasury stocks is sold for less than its cost, the entry should include a debit to

retained earnings

Cash conversion cycle

DIO + DSO - DPO

on an indirect method statement of cash flows, an increase in accounts payable would be

added to net income in the operating activities section

debt ratio

total liabilities/ total assets

stockholders equity section of a corporations balance sheet reports

treasury stock and not discount on bonds payable

failure to accrue interest expense results in

an overstatement of net income and an understatement of liabilities

the carrying value of bonds payable equals

bonds payable-discount on bonds payable

DPO equation

days in year/ accounts payable turnover

DIO equation

days in years/ inventory turnover

the purchase of treasury stock

decreases total assets and decrease stockholders equity

on an indirect method statement of cash flows, a gain on the sale of plant assets would be

deducted from net income in the operating activities section

what item appears on a statement of cash flows- indirect method

depreciation expense

recording estimated warranty expense in the year the related products are sold follows which accounting principle

expense recognition (matching)

on the statement of cash flows activities that obtain the cash needed to launch and sustain a company are

financing activities

on the statement of cash flows, activities that create long-term liabilities are usually

financing activities

gross margin %

gross margin/ net sales


Related study sets

Personnel Readiness Transformation Training

View Set

Ch 34: Liability to Third Parties & Termination

View Set

Chapter 37: The Child with a Cardiovascular/Hematologic Disorder

View Set

Exam 2 (CH 4-6), MHR 325: Chapter 4, Chapter 4, Organizational behavior exam 2, OB chapter 4, ch04, chapter 4 review exam 1, Organizational Behavior and Development Final, 5) Emotions, MGMT Quiz 3, MHR Chapter 6, MGT Chapter 6-9 Exam, CH 6, All, MGMT...

View Set

Animal Science 238 - Quiz 3 (Retail Meat Cuts)

View Set