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250 Matching questions

  1. Accounts Payable, Cash
  2. uncertain
  3. investors
  4. owner's equity
  5. working capital
  6. 50 units
  7. 300
  8. Pre
  9. subsidiaries
  10. dividends
  11. Price per Earnings (P/E)
  12. accounts
  13. Retained Earnings, Cash
  14. liquidity
  15. Accepted
  16. 286000
  17. 35000
  18. Specific Identification
  19. Adjusting
  20. Long
  21. Moving Average
  22. same
  23. equity
  24. right
  25. Depreciation Expense, Accumulated Depreciation
  26. Decrease
  27. net sales
  28. GAAP
  29. Accumulated
  30. 154000
  31. 103430
  32. expenses
  33. 0.397
  34. Incidence
  35. accounts receivable
  36. 2.94
  37. 7025
  38. debt ratio
  39. contra
  40. 7350
  41. Credited or CR
  42. gross margin
  43. increase
  44. profit margin
  45. individual
  46. conservatism
  47. leveraged
  48. opposite
  49. 255118
  50. monetary
  51. Inventory, Accounts Payable
  52. ledger
  53. sell
  54. Revenue
  55. Income Summary, Cost of Sales
  56. Accounting Cycle
  57. dual aspect
  58. Preferred
  59. Sales Revenue, Income Summary
  60. Financial Statement
  61. manufactured
  62. #EANF#
  63. long
  64. FASB
  65. Expense, $30
  66. Fundamental
  67. Retained Earnings
  68. 24000
  69. Debited or DR
  70. Break
  71. manufacturing
  72. CR, $1,800
  73. par value
  74. Straight Line
  75. Marketable Securities
  76. subtracting
  77. assets
  78. year
  79. Cost
  80. intangibles
  81. $1,900, $6,300
  82. Dual Affect
  83. outstanding
  84. capital
  85. Percentage of Completion
  86. DR,CR
  87. Variable
  88. money
  89. Accrued
  90. $2,200, CR
  91. short term
  92. TRUE
  93. 29000
  94. unrecoverable
  95. going concern
  96. 1000
  97. 36350
  98. materiality
  99. unincorporated
  100. Doubtful Accounts
  101. Debt
  102. retained earnings
  103. provided
  104. LIFO
  105. accelerated
  106. Merchandising
  107. inventory
  108. Held
  109. Credit (CR)
  110. 11000
  111. invests
  112. activities
  113. statements
  114. 1.07
  115. credit
  116. 40000
  117. accounting
  118. Taxes Payable, $382
  119. 1300
  120. liability
  121. Debit
  122. Trial Balance
  123. Transactions
  124. Net Sales
  125. 11.4 days
  126. CR, $2,000
  127. 20491.2
  128. expense
  129. income summary
  130. Book value
  131. Bad Debt Expense
  132. Fixed
  133. sources
  134. 20
  135. closing
  136. Rent Expense
  137. Indirect
  138. cash
  139. 200, 300
  140. adjusting
  141. Discounts
  142. stay the same
  143. revenue
  144. 130000
  145. 2.5
  146. Loss
  147. 1528
  148. Inventory
  149. +, $2,000
  150. account
  151. DR, $12,000
  152. debits
  153. interrelated
  154. practices
  155. uses
  156. 10000
  157. Full disclosure
  158. revenue recognition
  159. FIFO
  160. suppliers
  161. inflation
  162. finished goods
  163. Treasury
  164. Balance Sheet
  165. Accounts Payable
  166. 0.161
  167. exchange
  168. Operations
  169. sales revenue
  170. Gross sales
  171. Accounts Receivable
  172. Direct
  173. 850
  174. ROA (Return on Assets)
  175. 6000
  176. DR, $30,000
  177. 41200
  178. securities
  179. Cash
  180. Does not
  181. maximum
  182. Period
  183. Income Summary
  184. investing
  185. Periodic Inventory
  186. 60
  187. Finished Goods
  188. 30530
  189. 0.437
  190. Owners' Equity
  191. book value
  192. paid
  193. 20450
  194. net assets
  195. original
  196. limited
  197. Liabilities
  198. depreciation
  199. shareholders
  200. 27050
  201. 4000
  202. perpetual
  203. intangible
  204. ROI (Return on Investment)
  205. Prime
  206. Day's Inventory
  207. corporation
  208. drawings
  209. taxes payable
  210. Simple Payback
  211. adding
  212. General
  213. Payable
  214. Safety
  215. wasting
  216. equal
  217. better
  218. decrease
  219. equal to
  220. amounts
  221. Equities
  222. Additional Paid
  223. liabilities
  224. Journal
  225. PPE
  226. Commercial
  227. CR, $40,000
  228. Income Statement
  229. units of production
  230. 19 times
  231. 2700
  232. entity
  233. Cash Flow
  234. Work in Progess
  235. Cost of Goods Sold
  236. Debit (DR)
  237. Turnover
  238. Current liabilities
  239. Owners
  240. +, $4,000
  241. Will not
  242. 60000
  243. 13000
  244. 114546
  245. quick
  246. 215750
  247. Product
  248. Gross Margin
  249. public
  250. balances
  1. a Using the periodic inventory method, the amount of _________ remaining at the end of a period is subtracted from the total amount of goods available for sale to determine the cost of goods sold for the period.
  2. b When analyzing transactions, the amount debited must be ________ the amount credited.
  3. c A corporation whose shares are traded on securities exchanges is called a ______ corporation.
  4. d Sales Returns and Allowances are another source of _________ entries to the Accounts Receivable account.
  5. e Suppose Market Price per Share is $56.75, Net Income is $294,000 and there are 100,000 shares outstanding, what is the Earnings per Share? _____
  6. f A lease for a long period of time (almost the life of the asset) is called a _______ lease and is recorded as an asset.
  7. g The part of the current asset not financed by the current ___________ is called working capital.
  8. h On July 31, Abacus Co. receives their bank statement indicating that $12.80 has been debited from their checking account. What account is credited to record this transaction? ____
  9. i If an entity estimates that $3,000 of its AR is uncollectible, and prior to adjustments, the balance in the Allowance for Bad Debts account was a $1,200 credit; what is the adjusting entry for the Allowance for Bad Debts account (write as DR or CR , Amount--for example CR, $5,000)? __________
  10. j The current ratio is a common measure of _________ that calculates the ratio of current assets to current liabilities.
  11. k An asset that cost $40,000, has accumulated depreciation of $30,000 and is sold for $12,000. What is the entry for the cash account? (dr or cr , Amount) ___________
  12. l LJM. Inc has pretax income of $1,910. If the tax rate is 20% and taxes are paid once a year, at the end of January (using a comma between your answers) what account is credited and by what amount? ___________________
  13. m The _______ process involves transferring the balance of the Revenue and Expense accounts (temporary accounts) to the Income Summary account (clearing account).
  14. n The amount of equity that has been earned by the __________ of the entity is called Retained Earnings.
  15. o ___________________ Analysis involves calculating Financial Ratios to determine an entity's performance.
  16. p Equity accounts increase on the ___________ side.
  17. q If an entity borrows $100,000 on August 1, 2002 from First Financial Bank and agrees to 8% interest on the 1-year note, what is the accrued interest on January 31, 2003? ______
  18. r The claim against an entity's assets that the owner(s) has is called ______________.
  19. s If the balance in Inventory decreased during the period, total cash collected (collections) can be deduced by adding the decrease in inventory to the _____________.
  20. t If CLEP Co's Accrued Wages were $6,000 in 2002 and $10,000 in 2003, what entry is made on the Cash flow Statement to adjust net income to a cash basis? (write your answer as: + or - , $ amount) _________
  21. u _________ entries are necessary to modify account balances to fairly reflect the business situation at the end of the period.
  22. v _______________ is the number of day's inventory the entity has on hand.
  23. w Jones and Co. sells $2500 of inventory that cost $1600. $1200 of the sale is received as cash and the remainder is sold on account. What is the total value of the assets? _______
  24. x A contingent liability is an obligation to pay an amount in the future, if and when an _________ event occurs.
  25. y ____ capital refers to long term liabilities: they come due sometime after one year.
  26. z The Current Portion of the Long Term Debt is the amount of the long term debt that is to be paid in one ____.
  27. aa The _____________ concept refers to the fact that the business under consideration will remain in existence for the foreseeable future.
  28. ab The Cost of Goods Sold is determined by adding the cost of goods manufactured to the Beginning Goods inventory and then subtracting the ending amount of ______________ inventory.
  29. ac term- _________ assets have a life expectancy over which their value depreciates.
  30. ad Money (cash) or claims to receive a fixed sum of money (accounts receivable, notes receivable...) are called ________ assets.
  31. ae The _____ ratio calculates the ratio of monetary current assets to current liabilities.
  32. af The process of transferring the individual debits and credits from the journal to the ______ is called posting.
  33. ag ROE (Return on Equity) reflects how much the firm has earned on the funds invested by ____________.
  34. ah ___________ are the obligations of an entity to pay outside parties (creditors).
  35. ai If a company has assets of $25,750 and liabilities of $18,400, what is the total of its Owner's Equity? $_____
  36. aj ______ costs are those that are associated with the sales and general activities of the accounting period.
  37. ak Brown Co. has current assets of $62,000 and current liabilities of $50,000. It uses cash to purchase inventory. Will the working capital increase, decrease, stay the same? _____________
  38. al The money measurement concept stipulates that all business transactions must be expressed in _____ terms.
  39. am to-maturity- Securities that an entity intends to hold until maturity are called ________________ securities.
  40. an If the balance in Accounts _______ increases during a period, the amount of the increase is Added to net income.
  41. ao Increases or decreases in account balances are recorded as either ______ or credits.
  42. ap An asset that cost $40,000, has accumulated depreciation of $30,000 and is sold for $12,000. What is the entry for the accumulated depreciation account? (dr or cr , Amount) ___________
  43. aq Treasury bills are __________ obligations that the US government issues.
  44. ar During January, additional inventory is purchased for $5,750 on credit. Using a comma to separate your answers, Inventory is (dr / cr) $5,750 and Accounts Payable is (dr / cr) $5,750 (for example, your answer might be dr,dr) _____
  45. as The cost of goods ____________ is the amount of goods completed and transferred to the Finished Goods inventory.
  46. at The method of maintaining a record of each inventory item is called the _________ inventory method.
  47. au What is the ROA for Gelding Company in 2002? (see figures 2.1 and 2.2) _____
  48. av If White Co. issues 10 year bonds with a face value (issued amount) of $100,000, then white co. has a _________ account called Bonds Payable of $100,000.
  49. aw term- The liabilities that are not expected to be paid within one year are called _________ liabilities.
  50. ax If an entity has fixed costs of $80,000, variable costs at 48% of sales and sales of $450,000, what is the net income? ________
  51. ay What is the current ratio for XYZ company (refer to figure 1)? ___
  52. az The asset account associated with Bad Debt Expense is the Allowance for _________________.
  53. ba When an item of property, plant or equipment is acquired it is recorded at what value? ____
  54. bb Gotcha Co. purchased a truck for $44,000. It has a service life of 100,000 miles and a residual value of $4,000. If it was driven 15,000 miles the first year, what is the depreciation expense for that year using the unit-of-production method? ______
  55. bc The end product of financial accounting is the preparation of financial __________.
  56. bd The financial position of an entity at a specific point in time is called a _____________.
  57. be An asset that cost $40,000, has accumulated depreciation of $30,000 and is sold for $12,000. What is the entry for the Gain on the Sale of Plant Asset account? (dr or cr , Amount) __________
  58. bf A useful way to remember which side an account increases or decreases on is to identify which side of the ___________ accounting equation the account is on.
  59. bg Net Income is adjusted to a cash basis by ______ the amount of Depreciation Expense for the period.
  60. bh The communication of economic events that have taken place in an entity is called __________.
  61. bi When Assets are listed on the left-hand side and Liabilities and Owner's Equity are listed on the right-hand side, this is called the _______ form of the balance sheet.
  62. bj A Balance Sheet with Assets listed at the top and ________ listed underneath is called the report form of a balance sheet.
  63. bk Suppose Jones and Co. now borrows $15,000 from a bank and this transaction is evidenced as a note. What is the new value of the assets? _______
  64. bl If the variable cost increases, then the contribution per unit will ________, with the result being that more items will have to be sold in order to reach the breakeven point.
  65. bm The economic resources of an entity are called ______.
  66. bn If the total assets of Taylor Inc amount to $206,950 and the liabilities are $103,520, then the total owners' equity is? ________
  67. bo Gotcha Co. purchased a truck for $44,000. It has a service life of 100,000 miles and a residual value of $4,000. What is the depreciable cost? _______
  68. bp Before preparing financial statements, account balances are figured and a _____________ is prepared.
  69. bq A company that obtains a high portion of its capital from debt is said to be highly _________.
  70. br A corporation that holds more than one interest (i.e. owns more than one corporation) is called a parent and the other interests are called ____________. The set of financial statements for the whole family are called consolidated financial statements.
  71. bs A common way of measuring the relative amount of debt and equity capital is the __________.
  72. bt The amounts that an entity owes to its _________ resulting from the furnishing of goods or services are called accounts payable.
  73. bu The Revenue and Expense accounts are considered temporary because they are closed out to the _________________ account at the end of an accounting period.
  74. bv Revenue that has been collected for goods or services not yet ________ is called unearned revenue.
  75. bw Smith paid $25,000 to Smiling Buddha Co. and received 1,000 shares of $1 par value common stock. How much is credited to the Additional Paid-in-Capital account? _______
  76. bx Revenue and Expense accounts are closed to the ______________ account at the end of a reporting period.
  77. by Payment of _________ is a financing activity that is a use of cash.
  78. bz The difference between __________ and the value actually realized from the sale of a plant asset is called a gain or loss) on the disposition of plant assets.
  79. ca A business entity owned by an __________ is called a Sole Proprietorship.
  80. cb When an account has a balance on the side ________ the one where increases are recorded, then it has a deficit balance and it is recorded as a negative number or in parenthesis.
  81. cc When a company is growing or in a financial downturn, it may focus more on the _________ Statement than the Income Statement.
  82. cd __________ paper is a generic term for short-term interest bearing promissory notes issued by large companies.
  83. ce ___________________ are those obligations that are expected to be paid within one year.
  84. cf Angle of _________ is the angle made by the intersection of the sales line & the variable costs line.
  85. cg If net sales for XYZ company are $80,000, what is the Day's Receivable for XYZ company (refer to figure 1)? _________
  86. ch Suppose the direct materials used to produce a widget cost $10, and 1/2 hour of direct labor is involved at a rate of $12/hour, and an overhead rate of $8 per direct labor hour is used. What is the cost of the widget recorded as? ___
  87. ci The ________________ refers to the steps that are performed sequentially during an accounting period and that are repeated every subsequent period.
  88. cj The ___________ concept refers to the double sided nature of all accounting transactions.
  89. ck Returns and Allowances and Sales Discounts are subtracted from the Gross Sales figure to determine _________.
  90. cl Goods that have started the manufacturing process but are not yet finished are called _______________ inventory.
  91. cm Suppose Jones and Co. sells merchandise for $1200 cash that originally cost $750. What is the total Owner's Equity after this transaction? _______
  92. cn When preparing financial statements, the account ________ must be determined.
  93. co The interest paid on bonds is an _______ and is recognized in the period to which the interest applies.
  94. cp During January, LJM, Inc paid employees' wages totaling $3,000 (payroll taxes are not considered in this example). The Wage Expense account is _____________ $3,000.
  95. cq The ___________________ method to calculate depreciation multiples the unit cost by the number of units that asset produced in a period to determine the depreciation expense for that period.
  96. cr The ______ concept refers to the separation of business transactions from those of the business owner(s).
  97. cs The Bagel Company has Net Sales of $28,000, and a Net Income of $12, 240, what is the Profit Margin? _____
  98. ct After the cost of an asset has been completely written off, the ____________ expense for that asset in remaining years is zero.
  99. cu Assets that are valuable but nonphysical are called __________ assets.
  100. cv Companies often offer sales _________ to their customers to induce them to pay quickly.
  101. cw An inventory turnover of 6 times is generally ______ than a turnover of 3 times. (Answer is Better or Worse?)
  102. cx The ratio of COGS to Inventory is called the Inventory ________.
  103. cy At the end of January, LJM, Inc. has accrued one month's interest on the $4,000 loan it received from the bank at a yearly interest rate of 9%. Using a comma to separate the two answers, what type of account is debited and for how much? ____________
  104. cz The final adjusting entry performed in an accounting period is to close the value of the ______________ account to the Retained Earnings account.
  105. da ____ requires separate disclosure of the original cost of an entity's assets and the depreciation that has accumulated on these assets.
  106. db XYZ. Corp is assumed to have a total of $7,132 in its Allowance for Doubtful Account. To record this transaction, what account is debited? ________________
  107. dc The matching concept states that when a given event affects both revenues and expenses, the effect on each should be recorded in the ____ accounting period.
  108. dd When ___________ (goodwill, trademarks, patents...) are recognized as assets, their cost is written off over their serviceable life by the process of amortization.
  109. de The following transactions took place during April 2003 at Kendrick Co. The opening inventory consisted of 100 units of Product X valued at $10/unit. The following purchases were made during April:
  110. df Activities that involve spending cash are called ____ of cash.
  111. dg CLEP Company has a net income of $24,000 for the period ending 2003 and on the Income Statement for the period ended 2003 it reported a depreciation expense of $6,000. What is the total cash flow from operations after this is adjusted for? _______
  112. dh The cost to the entity of the goods or services being sold is called COGS (__________________).
  113. di When dividends are paid in the form of stocks rather than ____, they are called stock dividends.
  114. dj Suppose Gotcha Corp purchases a computer for $40,000 and pays $200 in freight and $1,000 installation, this purchase is recorded in the asset account as how much? _______
  115. dk A dry-cleaning shop takes two types of clothing. Jackets cost $6 to clean and the customer is charged $9 per garment. Coats cost $10 to clean and the customer is charged $12 per garment. The monthly fixed costs are $600 for each garment (representing the rental costs of two different types of machine). The shop expects to take in 500 jackets and 500 coats in the month. What is the total profit for the month? ______
  116. dl The ___________________ method that recognizes revenue in the period in which the goods are delivered is called the delivery method.
  117. dm At the end of January, various utility bills totaling $450 are received. Utilities Expense is debited $450 and ________________ is credited $450.
  118. dn The ______________ method of determining inventory costs involves calculating an average cost of goods and applying that average cost to both ending inventory and COGS.
  119. do What is the quick ratio for XYZ company (refer to figure 1)? ____
  120. dp Asset accounts increase on the _____ side.
  121. dq The net loss of Lander Corp. is $10,280 and the total expenses are $17,305. What is the total revenue for the same period? ______
  122. dr A ledger is a group of ________ that is either bound together in a book or kept together in a computer file.
  123. ds Transaction analysis is the process whereby the concept of ___________ is applied to determine what effect the transaction had on the entity's accounts.
  124. dt _______ revenue is revenue that has been earned by the entity but not yet paid to the entity.
  125. du Creditors have a direct claim on an entity's assets, whereas ______ have a residual claim.
  126. dv Stock is issued with a specific amount printed on the face of the certificate and this amount is called the _________.
  127. dw Margin of ______ is the number of units of sales revenue represented on a chart by the distance between the BE (breakeven) point and the expected sales.
  128. dx On January 12, LJM, Inc. makes a $200 sale on credit (customer will pay within a month). What account is debited? ___________________
  129. dy In accounting, debit means left and credit means _____.
  130. dz If a dividend of $5000 is declared, using a comma to separate your answers, what account is debited and what account is credited? _______________________
  131. ea Break-even Analysis assesses the point at which there are no profits; at that point total revenue is _____ to total costs.
  132. eb If XYZ company spends $10,000 on production overhead, $100,000 on direct labor, and $20,000 on direct materials, and if no product was sold, the Inventory account would be increased by what amount? ________
  133. ec A _____________ company sells goods in basically the same form as it acquires them.
  134. ed ___ are long term assets that are currently being used to generate income.
  135. ee Accounting principles are based on a set of concepts that underlie accounting _________.
  136. ef _______________ in accounting dictates that all relevant and explanatory information be included in the statements.
  137. eg __________________________ is broadly defined as net income / investment.
  138. eh The _______ credited to each partner depends on the partnership agreement.
  139. ei Capital received as an ownership interest in the entity is called ______ capital.
  140. ej If XYZ Corp had Accounts Receivable totaling $262,250 and an Allowance for Doubtful Accounts totaling 7,132, what is the net amount of the Accounts Receivable as shown on the balance sheet? ________
  141. ek If the balance in Accounts Receivable increased during the period, total cash collected (collections) can be determined by ___________ the increase in receivables from the sales revenue.
  142. el If an entity has Sales of $171,846, Sales Returns of $3,396, and a Gross Profit of 32%, what is the Cost of Goods sold? ________
  143. em in-Capital- If an entity declares a stock dividend totaling $15,000, what account is credited? __________________________
  144. en An asset that cost $40,000 has accumulated depreciation of $30,000 and is sold for $12,000. What is the entry for the Plant Asset account? (dr or cr , Amount) ___________
  145. eo A market trader rents a stall at a fixed price of $200 for a day and sells souvenirs. These cost the trader $5 each to buy and have a selling price of $9 each. How many souvenirs must be sold to break even? ________
  146. ep The ____ method of inventory evaluation assumes that the oldest goods are sold first and the most recently purchased goods are in the ending inventory.
  147. eq If management thinks that ____________ should reflect the difference between selling price and the cost of goods actually sold, then they should use the FIFO method of inventory valuation.
  148. er _______ costs are those that are associated with the production of products.
  149. es An entity has the capacity to produce 100,000 medallions per year with total fixed expenses of $180,000 and variable expenses of $3 per medallion. The medallions can be sold for $6.50 each. The company purchases a machine for $24,000 that has a service life of 3 years and that will reduce the variable cost to $1.75 per medallion. If the company produces and sells at 85% capacity for a one-year period, what is the net income at the end of the period? ________
  150. et During January, the $4,800 of Accounts Payable is paid. Using a comma to separate your answers, first give the account that is debited and then give the account that is credited. ______________________
  151. eu In practice, accounts are not debited and credited to T-accounts, rather the entries are made in a _______.
  152. ev The break-even analysis does or does not recognize cash flow. ________
  153. ew The first section of the Cash Flow Statement reports how much cash was generated by the day-to-day operating activities of the entity and is called Cash Flow from __________.
  154. ex The Balance Sheet and Income Statement are said to be articulate because they are ____________.
  155. ey The area below the fixed cost line and to the left of the BE point (grey shade) represents the area of ____.
  156. ez Assets like property, plant and equipment have a _______ life, thus their value depreciates over time.
  157. fa If Smiling Buddha has assets of $1,800,000, liabilities of $780,000, and 1200 shares outstanding with a par value of $250 each, what is the book value per share? ____
  158. fb Charging off an equal fraction of an asset each year until the end of its service life is called _____________ depreciation.
  159. fc If an entity expects to ____ an asset at the end of its service life, the amount it expects to receive for the asset is called the residual value.
  160. fd If the selling price of cleaning a coat rises to $15, then the contribution per unit will rise to $5, and that will require cleaning only 120 coats to break even. This will or will not improve the drycleaner's profitability? ________
  161. fe In January, LJM Inc. cash sales total $12,000. What account is credited? _______
  162. ff Decreases in the asset amount of a plant asset are accumulated in a separate account called ___________ Depreciation.
  163. fg Activities that generate cash are called _______ of cash.
  164. fh Land does not depreciate. True or False? ____
  165. fi The _____________ is derived from Net Income divided by Net Sales.
  166. fj paid- ________ expenses are intangible current assets that will be used up in the near future.
  167. fk Suppose that in January, the total overhead of XYZ Co. was $150,000 and that 40% of this overhead is associated with production activity and 60% is general administration, what amount of overhead is considered a product cost? _______
  168. fl The cost concept is an accounting principle requiring all financial statement items to be based on ________ cost.
  169. fm _____ costs are those costs that do not vary with sales or production level.
  170. fn in-capital- The amount shareholders have paid in exchange for their stock is called _______________.
  171. fo CLEP Co. paid dividends of $10,000 and its Mortgage Bonds payable increased from $34,000 in 2002 to $$40,000 in 2003. What is the net increase or decrease in cash flow at the end of 2003? _______
  172. fp The Cash Flow Statement is divided into 3 categories: operating activities, _________ activities, and financing activities.
  173. fq When an entity makes sales to customers on ______ (Accounts Receivable) it assumes the risk that not all monies owed will be collected. The expense account that is associated with this is called bad debts.
  174. fr _________ stock provides the owner a preferential claim on the assets if the corporation is liquidated.
  175. fs If fixed costs ________ (increase or decrease?) then more units have to be sold in order to reach the breakeven point.
  176. ft The ____________ concept requires that revenues are recognized only when they are reasonable certain, and expenses are recognized as soon as they are reasonably possible.
  177. fu If an entity's Account Receivable increased from $64,000 to $78,000 and sales remained constant at $300,000, how much cash did the entity collect from its customers during the year? ________
  178. fv The ______________ period method of capital budgeting consists of determining the number of years required to recover the initial cash investment.
  179. fw ________ Stock is a corporation's own stock that has been issued and acquired by the corporation.
  180. fx A Partnership is an ______________ business owned by two or more persons jointly.
  181. fy _____ costs are the sum of direct labor costs and direct materials cost.
  182. fz The equipment that LJM, Inc paid $7,200 for has a life expectancy of 10 years. At the end of January, one month's benefit has been used and the value of the equipment has depreciated. The Depreciation Expense account is debited what amount? ___
  183. ga What is the balance of LJM's Accounts Payable account given the Account shown below? Type in the $ value, then CR or DR, for example, your answer might be $500, CR. __________
  184. gb Goody Company manufactures skateboards that retail for $80. Goody recently discover that it has 150 defective skateboards. Each skateboard has $40 of direct material, labor and overhead and the defective boards can be sold for $32 or repaired for $38. If Goody chooses to repair the boards what will its net income for the sale of all 150 boards be? ____
  185. gc Items of material that are to become part of the goods for sale after _____________ are called materials inventory.
  186. gd Marketable __________ are current assets.
  187. ge The balance in the Sales Revenue account for LJM. Inc at the end of January is $12,200. Using a comma to separate your answer, first indicate what account is debited and then what account is credited? _____________________________
  188. gf If $1,000 of deprecation expense is recognized for a given period, using a comma to separate your answers, what account is debited and what account is credited? ______________________________________________
  189. gg The difference between revenues and ________ in called net income.
  190. gh The __________ of common stock is the total shareholders' equity as reported on the balance sheet.
  191. gi An entity buys a bottling machine with a list price of $30,000 and on terms of 2/10, n/30. Payment is made within a week and the cost of shipping is $150. The machine needs a special gate built and wiring installed at a cost of $700. To test the machine trial runs were done at a cost of $250 labor and $30 materials. The machine is recorded at a cost of what on the Balance Sheet? _______
  192. gj If a plant asset is purchased for $30,000 and it has an expected residual value of $3,000 at the end of its 10 year life, what is the amount of depreciation expense charged each year? ______
  193. gk Natural resources such as oil, coal, timber are called _______ assets and when the supply of such a resource is reduced it is called depletion.
  194. gl Mayberry Inc. has sales of $14,000 and $10,000 of that is collected in cash. If the Net Income for Mayberry Inc. is $4,000, what are the total expenses? _______
  195. gm The ________________ is a financial report that reports the results of business operations for a specific period of time.
  196. gn To generate January's sales, $6,000 of supplies were used. _________ is decreased (credited) $6,000 and COGS is increased (debited) by $6,000.
  197. go A dry-cleaning shop takes two types of clothing. Jackets cost $6 to clean and the customer is charged $9 per garment. Coats cost $10 to clean and the customer is charged $12 per garment. The monthly fixed costs are $600 for each garment (representing the rental costs of two different types of machine). The shop expects to take in 500 jackets and 500 coats in the month. What is the BE volume for Jackets and what is the BE volume for Coats? (separate your answer with a comma) ________
  198. gp LJM, Inc. determines at the end of January that the $750 in prepaid expense for rent has been used up. What account is debited $750? ____________
  199. gq The amount owed to an entity by its customers is called ___________________.
  200. gr What is the ROE for Gelding Company, Inc for 2002?( see figures 2.1 and 2.2) _____
  201. gs If CLEP Co. has a net income of $24,000 for 2003, and AR was $42,000 in 2002 and $40,000 in 2003; what entry is made on the Cash flow Statement to adjust net income to a cash basis? (write your answer as: + or - , $ amount. For example, your answer might be +, $8,000) _________
  202. gt asset- A ____________ account is subtracted from another asset account.
  203. gu Smith paid $25,000 to Smiling Buddha Co. and received 1,000 shares of $1 par value common stock. How much is credited into the Common Stock account? ______
  204. gv The ______ method of presenting cash flows from operations involves summarizing the inflows and outflows related to operations and arriving at a net cash flow from operations.
  205. gw _______________________ method of inventory costing uses the Cost of Goods Available for Sale (COGAS).
  206. gx Roar Inc. has net purchases of $70,000 and the merchandise inventory at the beginning of the period was $22,000. If their sales were $135,000 and their gross margin was 40% of sales, what was the value of the inventory at the end of the period? _______
  207. gy The realization concept states that the amount recognized as _______ is the amount that is reasonably certain to be realized.
  208. gz Skinner Corp has current assets of $78,000 and current liabilities of $75,000. It uses cash to purchase inventory. What is the effect on the quick ratio? (increase, decrease, stay the same?) ________
  209. ha The difference between Net Sales and the COGS (Cost of Goods Sold) is called ____________.
  210. hb In periods of _________, LIFO results in lower income than FIFO or average costs.
  211. hc An initial inventory of supplies is purchased on credit for $800. Using a comma to separate the answer, first give the account that is debited and then give the account that is credited (for example Answers1,Answer2). ___________________________.
  212. hd even- __________ analysis is used to help decide whether or not to engage in a given business activity.
  213. he A ___________ is a legal entity separate from the owners and it has a charter under which to operate.
  214. hf Research and Development is a _______ expense.
  215. hg Suppose Market Price per Share is $56.75, Net Income is $294,000 and there are 100,000 shares outstanding, what is the P/E ratio? ________
  216. hh In ___________ depreciation, more depreciation expense is charged in the early years of the asset's service life.
  217. hi Financial accounting is governed by basic ground rules that are referred to as Generally ________ Accounting Principles.
  218. hj The partnership agreement between Abdul and Cowell provided that Cowell work part-time and receive a salary of $75,000, Abdul would work full time with $150,000 salary. They would each receive 9% interest on their invested capital and the remaining net income would be shared equally. On average Abdul's capital account was $100,000 and Cowell's was $90,000. If the net income before salaries was $280,000, by what amount was Cowell's capital account increased? _______
  219. hk If Abacus Corp has Net Sales of $28,460, a Gross Margin of 28%, and Net Income of $4,550; what is the total Cost of Goods Sold? __________
  220. hl ________________________ ratio is the ratio between what an entity's share price is and the Earnings per that share.
  221. hm Gotcha Co. purchased a truck for $44,000. It has a service life of 100,000 miles and a residual value of $4,000. What is the estimated cost per mile? $0.40
  222. hn ____________ are business activities that change the balances in an entity's accounts.
  223. ho Goods that have been manufactured but not yet sold are called ______________ inventory.
  224. hp ____ inventory valuation assumes that the most recently acquired goods are sold first.
  225. hq The method of estimating the portion of AR (accounts receivable) that is _____________ by assigning a different percentage depending on the age of the AR is called Aging Accounts Receivable.
  226. hr The ___________ concept refers to the practice of accountants to use Generally Accepted Accounting Principles (GAAP) except when to do so would be expensive or difficult, and where it makes no real difference if the rules are ignored.
  227. hs ________ costs are those costs that correlate with sales or production level.
  228. ht ___________ is the total invoice price of goods sold (shipped) or services rendered during a given period.
  229. hu The difference between current assets and current liabilities is called _______________.
  230. hv ______________________ reflects how much the firm has earned on the investment in all the financial resources committed to the firm.
  231. hw When an entity _______ in additional property, plant or equipment (PPE), the amount involved is a cash outflow.
  232. hx A plant's capacity is measured by the _______ number of units it can produce.
  233. hy A stock split occurs when a corporation decides to ________ the outstanding shares for other shares (often 2 or 3 times the existing number).
  234. hz LJM's pretax income for January was $1,910 and the tax expense for the matching period was $382. What is the value of the Retained Earnings account at the end of January? ______
  235. ia An entity's equity increases when the owners provide capital (buy shares or invest directly) and when profits increase the _________________.
  236. ib Vertical analysis analyzes the income statement items in terms of _________.
  237. ic The balance in the Cost of Sales account for LJM. Inc. is $6,000. Using a comma to separate your answer, first indicate what account is debited and then what account is credited? _____________________________
  238. id If an entity has an excess of cash they often invest in _____________________.
  239. ie Projects performed under long-term contracts (construction, design, consulting...) use the ________________________ method to recognize revenue that is actually done in the reporting period.
  240. if Expense accounts increase on the __________ side.
  241. ig Foreign countries do not necessarily follow the same accounting standards and practices set out by the ____.
  242. ih In non-corporate entities (proprietorships or partnerships), the paid-in-capital section consists of capital, earnings, and ________.
  243. ii The ________ method of preparing a Cash Flow Statement involves reconciling the net income amount to a cash amount.
  244. ij The amount an entity owes the government for taxes is called _____________.
  245. ik The Earnings per Share ratio represents the percentage of earnings per the number of ___________ shares.
  246. il Goodwill represents the premium a buyer is willing to pay for an entity over and above the value of __________.
  247. im Paid-in-capital is the amount of capital supplied by equity _________.
  248. in Available-for-sale maturities are debt and equity securities that are reported at market value but any realized gains (or losses) are directly credited (or debited) to the ______________ account.
  249. io In the __________________ method a physical count is made of merchandise in the ending inventory and the cost of this inventory is determined.
  250. ip On January 1, T. Riff invested $5,000 cash into LJM Inc. as the owner of the business. The cash account is debited (dr) $5,000 and the Owner's Capital Account is ______________ $5,000.