Practice Exam #3

Business Core Foundations with Mc Daniel at University of Arkansas - Fayetteville

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By: Maria Vescovo
Created: 2011-11-16
Size: 26 flashcards
Views: 91

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note receivable due in 1350 days appear on the

balance sheet in the current assets section

adjusting entries are

needed to bring accounts up to date and match revenue and expenses

in capsim, what is a market segment?

a group of customers who have similar needs

the type of account and Normal balance of unearned rent is

liability, credit

what effect will the following adjusting Journal entries have on the accounting records?

debit depreciation expense / credit accumulated depreciation, which decreases net book value

the retained earnings statement begins with the beginning balance of retained Earnings...

plus net income (loss) less Dividends

Importance to high tech customers in capsim

positioning, age, price, MTBF

the balance in the prepaid rent account before adjustment DEC 31 is 24,000, which represents four months paid on Dec 1. The adjusting entry required on Dec 31 is?

debit rent expense 6,000 -- credit prepaid rent 6,000 (24000 divided by 4 months = 6000O)

What causes a change in MTBF

material cost

based on the preceding worksheet, the JOurnal entry to close expenses would be?

must close revenue, expenses, and dividents

Close revenues

O out - Debit and Credits

Close Dividends

- O out Retain Earnings and credit and debits

Close Income Summary

- debit/credit and credit retained earnings

How do you get Retained Earnings?

Income less than dividends = net income. Add that amount to previous periods retained earnings = New Retained earnings

the order which accounts are closed

revenues, expenses, income summary, and dividends account

in capism, what trend can be explicitly observed in the industry your company is operating in?

products become smaller and smaller

which account ordinarily appears in the post closing trial balance?

unearned rent

current asset

cash, accounts receivable, prepaid expenses

the difference between the totals of debit and credit columns or the adjusted trial balance columns on a worksheet?

indicates that there is an error

in accrual accounting, revenue is recognized at the time when?

goods and services are delivered to the customer

What is an example of an accrued expense

salary owed but not yet paid

the nature business year

fiscal year that ends when business activities are at its lowest point

supplies are recored as assets when purchased. the credit to supplies in the adjusting entry is for the amount of supplies

used

define ledger

a group of accountants for a business entity

Where adjusting transactions start and end (1-3)

Transactions are entered into a JOURNAL then to accounts called POST THE LEDGER then perform an UNADJUSTED TRIAL BALANE

accounting period concept

requires that revenues and expenses be reported in the proper period

About this deck

By: Maria Vescovo
Created: 2011-11-16
Size: 26 flashcards
Views: 91

About StudyBlue

“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis