Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Accounting > ACC 222 Final Exam > Flashcards

ACC 222 Final Exam Flashcards

(50 cards)

Start Studying
1
Q

What is a characteristic of a general partnership regarding tax payments?

A

Does not pay taxes (partners pay their share on personal tax return)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does ‘mutual agency’ mean in the context of a general partnership?

A

Assumed partners can act on behalf of the partnership but this clarifies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the implication of ‘limited life’ in a general partnership?

A

If an old partner leaves or a new partner enters, it requires paperwork

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the characteristics of a corporation?

A
  • Separate legal entity
  • Owners are stockholders
  • Ownership is easily transferable
  • Continuity of existence
  • Ownership is constantly changing
  • Publicly or privately held
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the greatest advantage of a corporation?

A

Limited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the greatest disadvantage of a corporation?

A

Double taxation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the rights of stockholders?

A
  • Right to vote to elect board of directors
  • Right to receive dividends if declared
  • Right of preemption
  • Right to share in proceeds upon liquidation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the three types of shares of stock?

A
  • Authorized
  • Issued
  • Outstanding
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is treasury stock?

A

Shares issued but bought back by the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the three circumstances that must be met for a cash dividend?

A
  • Declaration by board of directors
  • Adequate cash
  • Adequate retained earnings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

True or False: Dividends are considered an expense and affect net income.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is preferred stock?

A

Typically does not carry the right to vote, gets dividends first, and gets investment back first in liquidation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is cumulative dividend preference?

A

If dividends are not declared, they must be paid the next time dividends are declared

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a prior period adjustment?

A

Correcting an error from a previous year’s net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a stock dividend?

A

Affect account balance, reduce retained earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a stock split?

A

Does not affect any account balances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are registered bonds?

A

Someone is keeping track of the bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are secured bonds?

A

Backed by specific collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are debenture bonds?

A

Not collateralized by any concern

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the difference between term bonds and serial bonds?

A
  • Term bonds mature all at once
  • Serial bonds mature in a series of installments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How are bonds stated on the balance sheet?

Study These Flashcards
A

Noncurrent liability reported at carrying value

22
Q

What is the direct method in cash flow?

Study These Flashcards
A

FASB prefers this method for its descriptive operating activities

23
Q

What are the three sections of cash flow statements?

Study These Flashcards
A
  • Operating Activities
  • Investing Activities
  • Financing Activities
24
Q

What are discontinued operations?

Study These Flashcards
A

Dispose of an entire segment of your business, reporting net income or loss separately

25
What is a change in accounting principle?
Switch from one acceptable accounting method to another acceptable accounting method
26
What is managerial accounting?
For managers; helps make better decisions without specific rules, focusing on present and future
27
What is financial accounting?
Focuses on past information for users outside the company, adhering to GAAP
28
What are the three types of product costs?
* Direct materials * Direct labor * Overhead
29
What are period costs?
Costs not in the factory that go straight to the income statement as expenses
30
What is job order costing?
Accumulate cost by job on Job Cost Sheet for custom jobs
31
What is process costing?
Accumulate costs for homogeneous units
32
What are fixed costs?
Stay the same in total regardless of production levels
33
What are variable costs?
Incurred on a per unit basis; total variable cost goes up with production
34
What are mixed costs?
Part fixed and part variable costs
35
What is the scattergraph method?
A subjective method for estimating fixed and variable costs
36
What is the high-low method?
Uses highest and lowest activity levels to estimate costs
37
What is least squares regression?
Most accurate method for estimating costs using a linear equation
38
What is contribution margin?
Revenue left after covering variable costs to go towards fixed costs and profit
39
What are relevant costs?
Costs that can be avoided
40
What are sunk costs?
Costs that have already been incurred and are no longer relevant
41
What are out-of-pocket costs?
Costs incurred when choosing one alternative over another
42
What is opportunity cost?
Something given up to do something else
43
What is a master budget?
Combines all budgets into one
44
What is top-down budgeting?
Upper management creates the budget and passes it to lower management
45
What is bottom-up budgeting?
Lower management creates the budget and submits it to upper management
46
What is baseline budgeting?
Poor practice that builds inefficiency into the budget
47
What is zero-based budgeting?
Starts from a 'zero base' and every function is analyzed for its needs and costs
48
What is the sales budget?
Always prepared first in the budgeting process
49
What are standard costs?
Ideal standards that presume perfection, causing variances
50
What are practical standards?
Normal downtime and fatigue considered in cost estimation

Accounting (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions