Acg 2021 Study guides, Class notes & Summaries

When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of disposal is charged with its share of the asset's depreciation - ANSWER-true Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change in accounting estimate and is reflected in the current and future financial statements. - ANSWER-true the purchase of a property that inc...

At December 31, Moore Company's inventory records indicated a balance of $400,000. Upon further investigation it was determined that this amount included the following: (1) $56,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB shipping point, but not due to be received until January 3. (2) $23,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB destination, but not due to be received until January 2. (3) $6,000 in goods ...

Which of the following users would rely on managerial accounting information for decision-making purposes? - ANSWER-company managers ________ is the equity earned by profitable operations that is not distributed to stockholders - ANSWER-Retained earnings Regarding a business organized as a partnership, which of the following is an incorrect statement? - ANSWER-A partnership's life is not dependent on a specific individual's ownership The net income of Hollywood Talent Services is $ 22...

Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials supplier. Which of the following accounts decrease? A. Office Supplies B. Retained Earnings C. Accounts Payable D. Accounts Receivable - ANSWER-C. Accounts Payable Montgomery Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation? A. Cash increases and Servic...

The obligation to pay for goods purchased from suppliers is called a(n) - ANSWER-accounts payable What type of account or account classification is Prepaid Insurance? - ANSWER-asset Henson Company began the year with retained earnings of $330,000. During the year, the company issued $20,000 of additional common stock, recorded revenues of $500,000, recorded expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year? - ANSWER-$410,000 ...

a sole proprietorship-is owned by a single individual -simple to establish -owner control -tax advantages -personally responsible for all stuff (meaning unlimited liability partnership-is owned by 2 or more individuals -partnership requires clear agreements about authority + sharing of profits + losses -does not have enough economic resources to initiate or expand the business -unique skills or resources -simple to establish -shared control -broader skills and resources -tax advanta...

Name the Cash Flows: 1.) Cash receipts from sales 2) Cash payments for inventories 3) Lending to others 4) Cash payments of dividends 5) Cash receipts from dividends 6) Cash receipts from borrowing money 7) Cash payments for inventories 8) Cash receipts from stock 9) Cash payments for salaries 10) Collecting loans 11) Cash payments for longterm assets 12) Repaying debt 13) Cash payments for interest 14) Cash payments for expenses

Accounts Payable - ANSWER-Amounts owed to suppliers for credit purchases Unearned Revenue - ANSWER-A liability created when a business collects cash from customers in advance of providing services or delivering goods. Extraordinary Repairs - ANSWER-expenditures extending the asset's useful life beyond its original estimate The entry for accrued revenue is - ANSWER-Dr. Accounts Receivable, Cr. Revenue The entry for an accrued expense is - ANSWER-Dr. Expense, Cr. Liability The entr...

ACG 2021 Final Exam Questions and answers, rated A+. Which of the following would appear on an income statement? a. Cash b. All of these appear on income statements c. Retained earnings d. Accounts payable e. Service revenue - e. Service Revenue The income statement reports revenues, expenses, and net income. This information relates to Harold Corporation: Dividends, $5,000 Sales revenue, $75,000 Cash, $15,000 Salaries and wages expense, $20,000 Rent expense, $10,...

materiality - ANSWER-A company-specific component of relevance and is likely to influence the decision of an investor or creditor if its size is ____________. consistency - ANSWER-The use of the same accounting principles and methods from year-to-year within a company. measurable - ANSWER-The amount if the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. faithful rep...