Flashcards in Final Deck (58)
If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction of the period's change in total liabilities is:
declaring and paying cash dividends:
decrease stockholders' equity
how does receiving a bill to be paid next month for services received affect the accounting equation?
Liabilities increase, Stockholders' equity decreases
Allen Marks, Great Marks
transactions affecting stockholders' equity include
shares of capital stock issued to stockholders, dividends declared and paid to stockholders, revenues and expenses
A credit balance in which of the following would indicate a likely error?
Office supplies purchased by Ari's alarm service on account were returned. Which of the following entries for Ari's alarm service records this transaction?
Accounts Payable, debit. Office Supplies, Credit
Which of the following entries records the receipt of cash from patients on account?
Cash, Debit. Accounts Receivable, Credit.
Using accrual accounting, expenses are recorded and reported only
when they are incurred, whether or not cash is paid
If the effect of the credit portion of an adjusting journal entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?
increases the balance of an expense account
prior to the adjusting process, accrued expenses have
been incurred, not paid, and not recorded
the cash basis of account records revenues and expenses when the cash is exchanged while the accrual basis of accounting...
records revenues and expenses when they are incurred
which of the following is an example of an accrued revenue?
swimming pool cleaning that has been provided but has not been billed or paid
a summary of selected ledger accounts appear below for Alberto's Plumbing Services for the current calendar year-end. Net Income for the period is
Amir designs purchased a one year liability insurance policy
The primary difference between periodic and perpetual inventory system is that a
Periodic system determines the inventory on hand only at the end of the accounting period
When the perpetual inventory system is used, the inventory sold is shown on the income statement as
Cost of Merchandise sold
Using the following information, what is the amount of Cost of Merchandise Sold
Sales to customers who use bank credit cards such as mastercard and visa are usually recorded by a
debit to cash and a credit to sales
merchandise with an invoice price of 3,000 is purchased on September 2
assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20, using the LIFO inventory method
assuming that the company uses the perpetual inventory system, determine the COMS for the sale of May 20 use the FIFO method
assuming that the company uses the perpetual inventory system, determine the ENDING INVENTORY VALUE for the month of May using the FIFO method
The value of the ending inventory using FIFO is
the value of the ending inventory using LIFO is
The value of the ending inventory using average cost is
If merchandise inventory is being valued at a cost and the price level is steadily rising, the method of costing that will yield the highest net income is
During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop
Assets and R/E overstated by $70,000; net income overstated by $70,000