REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9)

Size: px
Start display at page:

Download "REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9)"

Transcription

1 REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9) A. Chapter Internal Control Objectives. a. Safeguards to protect assets. b. Procedures to insure reliable financial reports. c. Methods to insure compliance with laws and regulations. d. Policies to direct operations toward common goals. 2. Control of Cash Receipts. a. Preventive controls (prevent theft and misuse). b. Detective controls (detect theft and misuse). c. Cash Over/Short Account. (1) No normal balance (2) Debit Balance - Miscellaneous Expense on Income Statement (3) Credit Balance - Other Revenue on Income Statement 3. Voucher System. a. Special form for recording relevant data about a liability and details of its payment. b. Supporting Documents: (1) Purchase requisition (2) Purchase order (3) Receiving report (4) Vendor invoice c. Designed to control cash disbursements and acceptance of obligations. 4. Petty Cash. a. Established to avoid writing numerous checks for frequent small purchases. b. Fund should always contain receipts and money equal to the authorized fund amount. c. Entry to Establish a Fund: Jul 5 Petty Cash...$25.00 Cash in Bank... $25.00 d. Entry to Replenish a Fund: (Performed when the fund is depleted, or at least at the end of the accounting period) Jul 19 Postage...$ 7.50 Transportation Expense Office Supplies Misc. General Expense Cash... $

2 5. Cash/Bank Reconciliation. a. Balance on the depositor's books and the balance on the bank statement do not always agree. b. Purpose of the reconciliation is to prove the accuracy of the depositor's and bank's records. Also, it produces the data for adjusting entries. c. Items Causing Differences between Bank and Depositor's Records: (1) Outstanding Checks (written, recorded, and sent, but not paid by bank) (2) Unrecorded Deposits (in-transit) (3) Charges for Service/Uncollectible Items (4) Collections (i.e., promissory notes) (5) Errors (bank and depositor) (6) NSF checks (customer checks returned for non-sufficient funds) d. Bank Reconciliation Example: (1) Statement Preparation: WESTERN SHOP Bank Reconciliation, November 30, 2Oxx Depositor Record Balance...$1,420 Bank Statement Balance...$1,295 Add: Error on Check #8l Add: Deposit of Nov $1,465 $1,610 Deduct: Bank Service Deduct: Outstanding Checks... (150) Charge... ( 5) Adjusted Balance... $1,460 Adjusted Balance... $1,460 (2) General Journal Adjusting Entries: Nov 30 Cash...$45.00 Store Supplies... $45.00 To record adjustment for error in posting a purchase on credit. Nov 30 Bank Service Charges...$ 5.00 Cash... $ 5.00 To record Service charge for collecting a note receivable. C. CHAPTER Valuation of Accounts Receivable. a. Matching Principle recognizes uncollectible receivables (losses) at the time the sales occur. 2

3 b. Bad Debts Expense/Allowance for Bad Debts Accounts is an estimate, since it is not known as to who will default, when, or in what amount. c. Uncollectible Receivables Accounting Methods. (1) Direct Write-Off Method: (a) Does not match revenues and expenses during the accounting period. (b) Acceptable procedure only when the amount is insignificant (not material). (2) Allowance Method: (a) Percentage of Sales (Income Statement Approach): historical bad debt percentage of credit sales for the current period add computed amount to the allowance account (b) Percent of Receivables (Balance Sheet Approach): total receivable amount is multiplied by a historical percentage adjust the allowance account to computed amount (c) Aging/Analysis of Accounts Receivable (Balance Sheet Approach): detailed analysis of outstanding accounts receivable individual accounts adjust the allowance account to computed amount d. Illustrated Entries for Recording Bad Debts Expense: (1) Direct Write-Off Method: 20x1 Mar 27 Bad Debts Expense...$ 360 Accounts Receivable-Mary Spencer... $ 360 To record write-off of an uncollectible account. (2) Allowance Method: 20x1 Dec.31 Bad Debts Expense... $1,810 Allowance for Bad Debts... $1,810 To record estimated amount of uncollectible accounts. 20x2 Mar 27 Allowance for Bad Debts... $ 285 Accounts Receivable-Arno Fall... $ 285 To record write-off of an uncollectible account. 2. Notes Receivable. a. Characteristics: (1) Promissory note written promise to pay. (2) Specific amount of money (face value or principal). (3) Payable at a definite time. (4) Note is a negotiable instrument and can be transferred by endorsement. 3

4 b. Life of a Note: (1) Can be expressed in terms of: (a) Days (b) Months (2) Determination of maturity date. c. Interest: (1) Rate of interest on a note is the rate charged for use of the principal for one year. (2) Formula for calculating interest: ( P x i x t = I ) Example Note ($1,000 note, 9% interest rate, for 120 days) Interest Principal x Rate x Time = Amount $ 1,000 9% 120 Days $30 $1, /360 $30 d. Maturity Value. (Formula: MV = P + I ) The sum of the principle (face) amount and the interest earned. e. Dishonored Note. (1) Maker fails to pay the note on the due date. (2) The maturity value is transferred from Notes Receivable to Accounts Receivable. f. Discounting Notes Receivable: (1) Discount - Interest charged by the bank. (Formula: MV x Di x Dt = DI) (2) Discount Period - Time note held by the bank. (3) Computation of Proceeds: (Formula: MV - DI) (a) (+) Maturity Value (MV) (b) (-) Discount on MV (DI) (c) (=) Proceeds (cash received from bank) g. Journal Entries Related to Notes Receivable: Review entries on Pages Selling Receivables. a. A company can sell all or a portion of their receivables to a bank or financial institution. b. The process is called factoring. c. The buyer is called the factor. d. Example journal entry for sale of receivables (factoring fee - 4%): May 10 Cash... $4,800 Factoring Fee Expense Accounts Receivable... $5,000 Sold accounts receivable. 4

5 C. Chapter Plant Assets. a. Definition - Tangible assets used in business and have a permanent or long life. b. Cost of Plant Assets. (1) All costs necessary to make asset ready for it's intended purpose. (2) Cost of land includes purchase price plus all related fees, commissions, etc. Does not include such items as fencing, sidewalks, paving parking lots, signs, etc., which are depreciable and are accounted for separately as land improvements. 2. Lump-Sum Purchase. a. Single purchase involving several plant asset (i.e., land, building, machinery, etc.) b. Cost allocated on the basis of their relative market values. 3. Depreciation Definition. Allocating to expense, the cost of an asset over it's useful life, in a systematic manner. 4. Accumulated Depreciation - contra-account (subtracts from the related asset account on the face of the Balance Sheet). 5. Depreciation Factors/Considerations. a. Acquisition Cost b. Residual Value (RV), Salvage Value (SV), Trade-In (TI), or ScrapValue (all the same). c. Useful Life d. Depreciable Cost (Cost - Residual Value) e. Book Value (BV) = (Cost - Accumulated Depreciation) 6. Depreciation Methods. a. Information Available: Cost of Machine...$ 20,000 Estimated Residual Value...$ 2,000 Estimated Production (Over life)... 24,000 Units Estimated Useful Life... 5 Years Current Year Production... 5,000 Units b. Straight-Line Depreciation: $ 20,000 - $ 2,000 = $ 3,600/Year 5 Years c. Units of Production Depreciation: (1) Rate Computation: $ 20,000 - $ 2,000 = $.75/Unit 24,000 Units (2) Depreciation: 5,000 Units x $.75 = $ 3,750 5

6 d. Double-Declining-Balance Depreciation: (1) Rate Computation: 100% = 20% (x 2) = 40% 5 Yrs.. (2) Depreciation: Carrying Annual Accum. Yr Amount Factor Deprec. Deprec. 1 $20,000 40% $8,000 $ 8, ,000 40% 4,800 12, ,200 40% 2,880 15, ,320 40% 1,728 17, ,592 40% 592(*) 18,000 (*) Note: You cannot depreciate below the Residual Value of $2,000. The actual computation is $1, but only $592 can be taken as the depreciation amount. 7. Revising Depreciation Estimates. a. Information Available: Cost of Truck...$ 5,000 Residual Value...$ 800 Useful Life...6 Years b. At the end of Year 5, it is determined that: (1) The truck's useful life remaining is now 2 years, instead of 1 year. (2) The new residual value will be $500. c. New Depreciation Calculation. Step (1): Accumulated Depreciation: $5,000 - $800 = $4,200 = $ 700/Year 6 Years 6 5 Years X $700 = $ 3,500 Step (2): Book Value (5th Year): Cost of Truck...$ 5,000 Less: Accumulated Depreciation... (3,500) Book Value...$ 1,500 Step (3): New Useful Life Base: Original Estimated Life... 6 Expired Time (years)... (5) Remaining Original Life... 1 Extension (Additional year)... 1 New Life Base

7 Step (4): Computation of New Depreciation: 8. Capital and Revenue Expenditures. Formula = Book Value - New Residual Value Remaining (New) Useful Life $1,500 - $500 = $500/Year 2 Years a. Revenue Expenditures (Ordinary repairs): (1) Benefits current period only. (2) Maintains the expected productive life of the related asset. (does not add to life) (3) Maintains asset in current working condition. (does not add productive capabilities) (4) Debit expense account. b. Capital Expenditures. (Adds to utility of plant assets for several accounting periods) (1) Additions - enlarges or adds a new feature. (debit asset account) (2) Betterments/Improvements - increases operating efficiency or capacity, but does not always increase an asset s life. (debit asset account) (3) Extraordinary Repairs - extends service/useful life. (debit accumulated depreciation acct) 9. Disposal of Assets. a. Sale. (1) Information Available: Cost of Machine...$5,000 Accumulated Depreciation... 4,200 Cash Received on Sale (2) Journal Entry to Record Sale: Cash...$ 900 Accumulated Depreciation-Machines... 4,200 Machinery... $ 5,000 Gain on Sale of Assets b. Disposal (Discarded). (1) Information Available: (Same as above, except no cash is received) (2) Journal Entry to Record Discarding: Accumulated Depreciation - Machines...$ 4,200 Loss on Disposal of Assets Machinery... $5,000 c. Exchange of Plant Assets. (1) Commercial Substance Definition - An exchange has commercial substance if a firm s future cash flows change as a result of the transaction. 7

8 (2) Commercial Substance Rules: (a) Record gains and losses when commercial substance exists. (b) Gains and losses are absorbed into the cost of the new asset when commercial substance does not exist. d. Trade-In of Asset (With a Gain). (Commercial Substance does not exist) (1) Information Available: Cost of Old Machine...$5,000 Accumulated Depreciation... 4,000 Cost of New Machine... 7,000 Trade-In... 2,000 (2) Computations: Step (1): Gain/Loss Computation: Cost of Old Machine...$ 5,000 Accumulated Depreciation... (4,000) Book Value...$ 1,000 Trade-In... (2,000) Gain on Exchange...$(1,000) Step (2): Cash Paid (Boot): Cost of New Machine...$ 7,000 Less: Trade-In... (2,000) Cash Paid (Boot)...$ 5,000 Step (3): Cost Basis of New Machine: Cash Paid...$ 5,000 Book Value (Old Machine)... 1,000 Cost Basis (New Machine)...$ 6,000 Note: Gains must be absorbed into the cost of the new machine if commercial substance does not exist. (3) Journal Entry to Record Exchange: Check the above computations by the following: Purchase Price (New Machine)...$ 7,000 Gain on Exchange (Old Machine)... (1,000) Cost Basis (New Machine)... $ 6,000 Machinery (New Machine)... $6,000 Accumulated Deprec-Machinery... 4,000 Machinery (Old Machine)... $5,000 Cash... 5,000 8

9 e. Trade-In of Asset (With a Loss). (Commercial Substance exists) (1) Information Available: Same as in Paragraph 1.d.(1) above, except the Trade-In Allowance is $500. (2) Computations: Cost of Old Machine...$ 5,000 Accumulated Depreciation... (4,000) Book Value...$ 1,000 Trade-In Allowance... (500) Loss on Exchange...$ 500 (3) Cash Paid (Boot): Cost of New Machine...$ 7,000 Less: Trade-In Allowance... (500) Cash Paid...$ 6,500 (4) Journal Entry to Record Exchange: Machinery (New Machine)...$7,000 Accumulated Depreciation - Machines... 4,000 Loss on Exchange of Assets Machinery (Old Machine)... $5,000 Cash... 6,500 f. Depreciation account is updated for any partial year use, up to the date of disposal, before recording the disposal of an asset. 10. Journal Entries Related to Acquisition and Disposal of Plant Assets: a. Discarding b. Selling (Gain and Loss) c. Exchange (Gain/Loss) 11. Natural Resources. a. Long-term assets. b. Physically extracted in operations and is not replaced. Referred to as wasting assets. c. Depleted based on units of production (similar to depreciation). d. Depletion is recorded by charging to an expense account and crediting an accumulated depletion account. e. Data: Cost...$400,000 Depletion Calculation: Salvage Value...$ 20,000 $400,000 - $20,000 = $0.38 per ton Est. Production...1,000,000 tons 1,000,000 tons st 1 year Production... 90,000 tons 90,000 x $0.38 = $34,200 f. Journal Entry: Depletion Expense...$ 34,200 Accumulated Depletion - Coal... $ 34,200 g. Natural Resources are reflected on the Balance Sheet at cost, less accumulated depletion. 9

10 12. Intangible Assets. a. Assets that have no physical existence, but have value. b. Examples. (1) Patents (3) Goodwill (2) Copyrights (4) Trademarks c. Amortization - Write-off of intangible assets to expense, over their useful life. Write-offs are made to expense and the asset account direct: d. Patents. (1) Gives owner/inventor exclusive rights for a period of 20 years. (2) These assets are amortized over the useful life, not to exceed 20 years (cost / useful life = $5,500 / 10 years = $550) (3) Journal Entry: Patents Expense...$ 550 Patents... $550 e. Goodwill. (1) The value of all favorable attributes that are related to a business as a whole. A business is said to have goodwill when it's rate of expected future earnings is greater than that normally expected in the industry. (2) Recorded only when there is an exchange transaction that involves the purchase of an entire business and the price paid exceeds the fair market value of the net assets acquired. (3) Goodwill is not amortized. It is tested annually to determine if there is any impairment of its value. f. Copyrights. (1) Gives the artist, author, composer, etc. the exclusive right to publish and sell musical, literary, or artistic works, during the life of the creator and for 70 years thereafter. (2) Amortized over its useful life. (cost / useful life = $15,000 / 20 years = $750) (3) Journal Entry: Copyright Expense...$ 750 Copyrights... $750 10

College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles

College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles 1. HOW DOES A BUSINESS MEASURE THE COST OF A PLANT ASSET? Plant assets are long-lived, tangible assets used in the operation

More information

Fixed Assets and Intangible Assets

Fixed Assets and Intangible Assets C H A P T E R 10 Fixed Assets and Intangible Assets Financial Accounting 14e Warren Reeve Duchac human/istock/360/getty Images Nature of Fixed Assets Fixed assets are long-term or relatively permanent

More information

Chapter 9. Plant Assets. Determining the Cost of Plant Assets

Chapter 9. Plant Assets. Determining the Cost of Plant Assets Chapter 9 Plant Assets Plant Assets are also called fixed assets; property, plant and equipment; plant and equipment; long-term assets; operational assets; and long-lived assets. They are characterized

More information

Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9

Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9 Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9 Name Multiple Choice: Circle the letter corresponding to the best answer for each question. Only circle one answer per question. Problems: Show ALL work

More information

Chapter 8 Accounting for Receivable

Chapter 8 Accounting for Receivable Chapter 8 Accounting for Receivable Type of receivable: Receivable refers to amounts due from individuals and companies. o Account receivable: Amount customer owe on account, result from sales of goods

More information

FINAL EXAM The Hashemite University, Department of Accounting, Dr Husam Al-Khadash Principle of Accounting,

FINAL EXAM The Hashemite University, Department of Accounting, Dr Husam Al-Khadash Principle of Accounting, FINAL EXAM The Hashemite University, Department of Accounting, Dr Husam Al-Khadash Principle of Accounting, Name: Seat No. Student No. Question One (11 marks): Identify the answer of each of the following

More information

Accounting 201 Comprehensive Practice Exam 2C Page 1

Accounting 201 Comprehensive Practice Exam 2C Page 1 Accounting 201 Comprehensive Practice Exam 2C Page 1 1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the

More information

Dr. M.D. Chase Accounting Principles Examination 2J Page 1

Dr. M.D. Chase Accounting Principles Examination 2J Page 1 Accounting Principles Examination 2J Page 1 Code 1 1. The term "net sales" refers to gross sales revenue reduced by sales discounts and transportation-in. 2. The cost of goods available for sale in a given

More information

CHAPTER 9 FIXED ASSETS AND INTANGIBLE ASSETS

CHAPTER 9 FIXED ASSETS AND INTANGIBLE ASSETS CHAPTER 9 FIXED ASSETS AND INTANGIBLE ASSETS CLASS DISCUSSION QUESTIONS 1. a. Tangible b. Capable of repeated use in the operations of the business e. Long-lived 2. a. Property, plant, and equipment b.

More information

Accounting Notes. Types (classifications) of Assets:

Accounting Notes. Types (classifications) of Assets: Types (classifications) of s: 1) Current s - short lived assets used in the operations of a business 2) Plant s - long lived tangible assets used in the operations of a business 3) Long Term Investment

More information

ASSETS. Are cash and other Assets expected to be converted into cash, either in One Year or in the operating cycle, which ever is longer.

ASSETS. Are cash and other Assets expected to be converted into cash, either in One Year or in the operating cycle, which ever is longer. ASSETS Current Assets: Are cash and other Assets expected to be converted into cash, either in One Year or in the operating cycle, which ever is longer. sold, or consumed funds. : It is the money on deposit

More information

value, also called residual value or scrap value, is an estimate of the asset's value at the end of its benefit period.

value, also called residual value or scrap value, is an estimate of the asset's value at the end of its benefit period. value, also called residual value or scrap value, is an estimate of the asset's value at the end of its benefit period. ~ Your answer is correct! Read about this Leftover Useful Obsolescence The correct

More information

Financial Accounting and Reporting Exam Review. Fixed Assets. Chapter Five. Black CPA Review www.blackcpareview.com Chapter 5

Financial Accounting and Reporting Exam Review. Fixed Assets. Chapter Five. Black CPA Review www.blackcpareview.com Chapter 5 Fixed Assets Chapter Five Black CPA Review www.blackcpareview.com Chapter 5 Objectives: Objective 1: Know which costs associated with the purchase of fixed assets are capitalized Objective 2: Understand

More information

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2 Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total

More information

CHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS

CHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS CHAPTER 16 Non-current assets: Revaluation, disposal and other aspects CONTENTS 16.1 Non-current asset disposals 16.2 Revaluation and disposal 16.3 Intangibles and natural resources 16.4 Goodwill and discount

More information

Self-test Comprehensive Problems II 综 合 自 测 题 II

Self-test Comprehensive Problems II 综 合 自 测 题 II Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制

More information

Solution. Term: Fall Year: Time Period Start time: 9:00 am End time: 11:30 am

Solution. Term: Fall Year: Time Period Start time: 9:00 am End time: 11:30 am Solution Term: Fall Year: 2011 Student Name Student ID Number Date of Exam Thursday, December 15, 2011 Time Period Start time: 9:00 am End time: 11:30 am Duration of Exam 2.5 hours Number of Exam Pages

More information

ACCOUNTING DICTIONARY

ACCOUNTING DICTIONARY ACCOUNTING DICTIONARY A Account a record summarizing all the information pertaining to a single item in the accounting equation Account balance the amount in an account Account number the number assigned

More information

Chapter 8: account receivable

Chapter 8: account receivable Chapter 8: account receivable Three accounting issues associated with accounts receivable are: 1. Recognizing accounts receivable 2. Valuing accounts receivable 3. Disposing of accounts receivable Recognizing

More information

CHAPTER 9. Plant Assets, Natural Resources, and Intangible Assets 3, 4, 5, 6, 7, 8, 9 4, 5, 6, 7, 8, 9, 10, 24, 25, 26 16, 17, 18, 19, 20, 21, 22

CHAPTER 9. Plant Assets, Natural Resources, and Intangible Assets 3, 4, 5, 6, 7, 8, 9 4, 5, 6, 7, 8, 9, 10, 24, 25, 26 16, 17, 18, 19, 20, 21, 22 CHAPTER 9 Plant Assets, Natural Resources, and Intangible Assets ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe how the

More information

Financial Accounting (Sole Proprietorship)

Financial Accounting (Sole Proprietorship) Financial Accounting (Sole Proprietorship) This course covers the topics shown below. Students navigate learning paths based on their level of readiness. Institutional users may customize the scope and

More information

Chapter 3 the balance sheet and the statement of changes in stockholder. equity

Chapter 3 the balance sheet and the statement of changes in stockholder. equity Full Picture for Intermediate Accounting (I) Chapter 3 the balance sheet ASSET LIABILITY Current Chapter 6 cash and receivables Chapter 7/8 inventories Chapter 12 current liabilities and contingencies

More information

Principles of Financial Accounting ACC-101-TE. TECEP Test Description

Principles of Financial Accounting ACC-101-TE. TECEP Test Description Principles of Financial Accounting ACC-101-TE TECEP Test Description This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns, and financial

More information

ACCOUNTING 105 CONCEPTS REVIEW

ACCOUNTING 105 CONCEPTS REVIEW ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important

More information

ACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1

ACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1 ACCT 652 Accounting Week 4 Special Journals, Cash, and Internal Controls Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights

More information

ASSIGNMENT CHARACTERISTICS TABLE

ASSIGNMENT CHARACTERISTICS TABLE CHAPTER 9 Long-Lived Assets ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises Problems Set A Problems Set B 1. Apply the cost principle to property, plant, and equipment.

More information

2011 PBL National Leadership Conference Accounting for Professionals Test

2011 PBL National Leadership Conference Accounting for Professionals Test 2011 PBL National Leadership Conference Accounting for Professionals Test 1. Turn off all electronic devices. 2. Please print your name, school, and state on your event envelope. Each page of the test

More information

ADVANCED ACCOUNTING (02) REGIONAL 2006

ADVANCED ACCOUNTING (02) REGIONAL 2006 13 Pages Contestant Number Time Rank ADVANCED ACCOUNTING (02) REGIONAL 2006 Objective Questions (30 @ 2 points each) Job 1 Income Statement Job 2 Statement of Retained Earnings Job 3 Balance Sheet (60

More information

國 立 體 育 大 學 100 學 年 度 學 士 班 轉 學 考 試 試 題 休 閒 產 業 經 營 學 系 二 年 級 會 計 學 ( 本 試 題 共 8 頁 )

國 立 體 育 大 學 100 學 年 度 學 士 班 轉 學 考 試 試 題 休 閒 產 業 經 營 學 系 二 年 級 會 計 學 ( 本 試 題 共 8 頁 ) 國 立 體 育 大 學 100 學 年 度 學 士 班 轉 學 考 試 試 題 休 閒 產 業 經 營 學 系 二 年 級 會 計 學 ( 本 試 題 共 8 頁 ) 注 意 : 1. 答 案 一 律 寫 在 答 案 卷 上, 否 則 不 予 計 分 2. 請 核 對 試 卷 准 考 證 號 碼 與 座 位 號 碼 三 者 是 否 相 符 3. 試 卷 彌 封 處 不 得 汚 損 破 壞 4. 行

More information

CHAPTER 10 FIXED ASSETS AND INTANGIBLE ASSETS

CHAPTER 10 FIXED ASSETS AND INTANGIBLE ASSETS 1. a. Property, plant, and equipment or Fixed assets b. Current assets (merchandise inventory) 2. Real estate acquired as speculation should be listed in the balance sheet under the caption Investments,

More information

Financial Accounting. John J. Wild. Sixth Edition. McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Financial Accounting. John J. Wild. Sixth Edition. McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 06 Reporting and Analyzing Cash and Internal Controls Conceptual

More information

Sample Test for entrance into Acct 3110 and Acct 3310

Sample Test for entrance into Acct 3110 and Acct 3310 Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance

More information

4. The cost principle has survived because it provides information that is objective and verifiable.

4. The cost principle has survived because it provides information that is objective and verifiable. BAT4M - Solutions ANSWERS TO QUESTIONS 1. Tangible and intangible capital assets both are long-lived assets that are used by a business to produce revenue. The difference between them is that tangible

More information

CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions

CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation account: a record summarizing all the information pertaining

More information

CHAPTER 10 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLE ASSETS SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements

CHAPTER 10 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLE ASSETS SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements sg st a CHAPTER 10 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLE ASSETS SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements

More information

Profit (loss) for the period = Revenues - Expenses

Profit (loss) for the period = Revenues - Expenses ADDITIONAL NOTES FOR TEI MBA (CHAPTER ) THE PROFIT and LOSS ACCOUNT (INCOME STATEMENT) Measures and reports the profit or loss generated during a period. Profit (loss) for the period = Revenues - Expenses

More information

RAPID REVIEW Chapter Content

RAPID REVIEW Chapter Content RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

More information

國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題

國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題 國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題 會 計 學 ( 本 試 題 共 8 頁 ) 注 意 :1 答 案 一 律 寫 在 答 案 卷 上, 否 則 不 予 計 分 2 請 核 對 試 卷 准 考 證 號 碼 與 座 位 號 碼 三 者 是 否 相 符 3 試 卷 彌 封 處 不 得 汚 損 破 壞 4 行 動 電 話 或 呼 叫 器 等 通 訊 器 材 不

More information

Assuming office supplies are charged to the Office Supplies inventory account when purchased:

Assuming office supplies are charged to the Office Supplies inventory account when purchased: Adjusting Entries Prepaid Expenses Second Bullet Example - Assuming office supplies are charged to the Office Supplies inventory account when purchased: Office supplies expense 7,800 Office supplies 7,800

More information

Chapter 8. Reporting and Analyzing Receivables

Chapter 8. Reporting and Analyzing Receivables Chapter 8 Reporting and Analyzing Receivables Study Objective 1 - Identify the Different Types of Receivables The term receivables refers to amounts due from individuals and companies. Receivables are

More information

COMPONENTS OF THE STATEMENT OF CASH FLOWS

COMPONENTS OF THE STATEMENT OF CASH FLOWS ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling

More information

Chapter Overview Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment Learning Objectives Learning Objectives Chapter Overview

Chapter Overview Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment Learning Objectives Learning Objectives Chapter Overview Chapter 10 Chapter Overview Acquisition and Disposition of Property, Plant, And Equipment Chapter 10 Valuation at date of acquisition Disposition of assets Annual reports: Dr. Pepper, Winnebago, Intel,

More information

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL

More information

Financial Accounting: Assets FA 2 Module 6. Handouts. Current financial assets And current liabilities. Presented by: Laura Dallas, CGA

Financial Accounting: Assets FA 2 Module 6. Handouts. Current financial assets And current liabilities. Presented by: Laura Dallas, CGA Accounting: Assets FA 2 Module 6 Handouts Current financial assets And current liabilities Presented by: Laura Dallas, CGA Note: this information is prepared from the best information I have available

More information

Accounting 303 Final Examination. Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F".

Accounting 303 Final Examination. Part I True-False (1 point each, 12 points total) If true, circle T on the answer sheet, if false, circle F. Accounting 303 Final Examination Name Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F". 1. The Financial Accounting Standards Board (FASB)

More information

Century 21 Accounting, 8e General Journal Chapter Outlines

Century 21 Accounting, 8e General Journal Chapter Outlines Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting

More information

6. Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation.

6. Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation. 1. A company purchased land for $72,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start.

More information

ACCT Final Exam Notes

ACCT Final Exam Notes LO1: Identify the different types of receivables. - The term receivables refers to amounts due from individuals and businesses. They are claims expected to be collected in cash and are important, as they

More information

Chapter 10 Operational Assets: Acquisition and Disposition

Chapter 10 Operational Assets: Acquisition and Disposition Chapter 10 Operational Assets: Acquisition and Disposition QUESTIONS FOR REVIEW OF KEY TOPICS Question 10-1 The term operational asset is used to describe the broad category of long-lived assets that are

More information

Long-Lived Assets. 1. How the matching principle underlies the methods used to account for long-lived assets.

Long-Lived Assets. 1. How the matching principle underlies the methods used to account for long-lived assets. CHAPTER 9 Long-Lived Assets SYNOPSIS In this chapter, the author discusses (1) accounting for the acquisition, use, and disposal of long-lived assets, and (2) management's incentives for selecting accounting

More information

CHAPTER 7 Cash and Receivables

CHAPTER 7 Cash and Receivables CHAPTER 7 Cash and Receivables 7-1 LECTURE OUTLINE Chapter 7, the first of six asset chapters, covers cash, accounts receivable, and notes receivable. Temporary investments (marketable securities) are

More information

BUSINESS BOOKS. Accounting SIXTH EDITION. Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education

BUSINESS BOOKS. Accounting SIXTH EDITION. Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education BUSINESS BOOKS Accounting SIXTH EDITION Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education BARRON'S CONTENTS Preface ix 1 THE ACCOUNTING EQUATION I

More information

CHAPTER 23. Statement of Cash Flows 1, 2, 7, 8, 12 3, 4, 5, 6, 16, 17, 19 9, 20 4, 5, 9, 10, 11 10, 13, 15, 16. 7. Worksheet adjustments.

CHAPTER 23. Statement of Cash Flows 1, 2, 7, 8, 12 3, 4, 5, 6, 16, 17, 19 9, 20 4, 5, 9, 10, 11 10, 13, 15, 16. 7. Worksheet adjustments. CHAPTER 23 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Format, objectives purpose, and source of statement.

More information

Sample Test Questions CHAPTER 7 CASH AND RECEIVABLES Answer No. Description MULTIPLE CHOICE Conceptual d 1. Identification of cash items. b 2. Identification of cash items. d 3. Classification of travel

More information

Quiz Questions for Chapter 9

Quiz Questions for Chapter 9 Quiz Questions for Chapter 9 1. A truck was purchased for $25,000. It has a six-year life and a $4,000 salvage value. Using straight-line depreciation, what is the asset s carrying value (book value) after

More information

2. The balance in a deferred revenue account represents an amount that is Earned Collected a. Yes Yes b. Yes No c. No Yes d. No No.

2. The balance in a deferred revenue account represents an amount that is Earned Collected a. Yes Yes b. Yes No c. No Yes d. No No. Multiple choice (36%, 2%each): 1. Failure to record the expired amount of prepaid rent expense would not a. understate expense. b. overstate net income. c. overstate owners' equity. d. understate liabilities.

More information

Chapter 11 Operational Assets: Utilization and

Chapter 11 Operational Assets: Utilization and Chapter 11 Operational Assets: Utilization and Impairment QUESTIONS FOR REVIEW OF KEY TOPICS Question 11-1 The terms depreciation, depletion, and amortization all refer to the process of allocating the

More information

Walk Through Balance Sheet. Chapter 7. Learning Objectives. Learning Objectives 1, 2. Learning Objectives 1, 2. Cash and Receivables.

Walk Through Balance Sheet. Chapter 7. Learning Objectives. Learning Objectives 1, 2. Learning Objectives 1, 2. Cash and Receivables. Chapter 7 Walk Through Balance Sheet Cash and Receivables Chapters 1 6 Accounting cycle: JE, AJE, financial stmts Conceptual framework, GAAP, revenue Time value of money concepts Remaining chapters (ACTG

More information

Chapter 07 - Accounts and Notes Receivable. Chapter Outline

Chapter 07 - Accounts and Notes Receivable. Chapter Outline Chapter 07 - Accounts and Receivable I. Accounts Receivable A receivable is an amount due from another party. Accounts Receivable are amounts due from customers for credit sales. A. Recognizing Accounts

More information

(a) Accounts Receivable... 23,000 Sales Revenue... 23,000. (b) Sales Returns and Allowances... 2,400 Accounts Receivable... 2,400

(a) Accounts Receivable... 23,000 Sales Revenue... 23,000. (b) Sales Returns and Allowances... 2,400 Accounts Receivable... 2,400 BRIEF EXERCISE 8-1 (a) Other receivables. (b) Notes receivable. (c) Accounts receivable. BRIEF EXERCISE 8-2 (a) Accounts Receivable... 23,000 Sales Revenue... 23,000 (b) Sales Returns and Allowances...

More information

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary. 87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company

More information

is any organization for which financial statements are prepared. Reports of the amounts of assets, liabilities and equity as of one point in time.

is any organization for which financial statements are prepared. Reports of the amounts of assets, liabilities and equity as of one point in time. Accounting Balance Sheet Entity Balance Sheet is any organization for which financial statements are prepared. Reports of the amounts of assets, liabilities and equity as of one point in time. Left side

More information

Chapter 8 Accounting for Receivables 高立翰

Chapter 8 Accounting for Receivables 高立翰 Chapter 8 Accounting for Receivables 高立翰 Study Objectives 1. Identify the different types of receivables. 2. Explain how companies recognize accounts receivable. 3. Distinguish between the methods and

More information

Chapter 8 Accounting for Receivables

Chapter 8 Accounting for Receivables Chapter 8 Accounting for Receivables Types of Receivables Receivables: amounts due from individuals and companies that are expected to be collected in cash. 1. Accounts Receivables: amounts owed by customers

More information

Statement of Financial Accounting Standards No. 25. Statement of Financial Accounting Standards No.25. Business Combinations

Statement of Financial Accounting Standards No. 25. Statement of Financial Accounting Standards No.25. Business Combinations Statement of Financial Accounting Standards No. 25 Statement of Financial Accounting Standards No.25 Business Combinations Revised on 30 November 2006 Translated by Ling-Tai Lynette Chou, Professor (National

More information

C H A P T E R. Receivables. Financial Accounting 14e. human/istock/360/getty Images. Warren Reeve Duchac

C H A P T E R. Receivables. Financial Accounting 14e. human/istock/360/getty Images. Warren Reeve Duchac human/istock/360/getty Images C H A P T E R 9 Receivables Financial Accounting 14e Warren Reeve Duchac Classification of Receivables The term receivables includes all money claims against other entities,

More information

Uniform Accounting Network Inventory Manual. Table of Contents. Warranty Maintenance Debt Management Depreciation Disposal

Uniform Accounting Network Inventory Manual. Table of Contents. Warranty Maintenance Debt Management Depreciation Disposal Inventory Manual Uniform Accounting Network Inventory Manual Table of Contents Introduction Parts of the Manual Part 1 Assets Chapter 1 Acquisition Warranty Maintenance Debt Management Depreciation Disposal

More information

Balance Sheet. 15.501/516 Accounting Spring 2004. Professor S.Roychowdhury. Sloan School of Management Massachusetts Institute of Technology

Balance Sheet. 15.501/516 Accounting Spring 2004. Professor S.Roychowdhury. Sloan School of Management Massachusetts Institute of Technology Balance Sheet 15.501/516 Accounting Spring 2004 Professor S.Roychowdhury Sloan School of Management Massachusetts Institute of Technology Feb 09, 2003 1 Some residual administrative matters Access web

More information

CHAPTER 12. Intangible Assets 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 25. 3. Goodwill. 12, 13, 14, 18 5, 8, 9 12, 13, 15 5, 6

CHAPTER 12. Intangible Assets 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 25. 3. Goodwill. 12, 13, 14, 18 5, 8, 9 12, 13, 15 5, 6 CHAPTER 12 Intangible Assets ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Intangible assets; concepts, definitions; items comprising

More information

Chapter 8. Receivables

Chapter 8. Receivables Chapter 8 Receivables Receivables mean amounts owed to the company by others. Accounts Receivable are receivables resulting from the company rendering services or selling products to the public. The company

More information

中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試

中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試 中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試 7 月 12 日 14:00~15:30 商 學 群 組 二 年 級 科 目 : 會 計 學 ( 共 七 頁 第 一 頁 ) 可 使 用 計 算 機, 惟 僅 限 不 具 可 程 式 及 多 重 記 憶 者 一 MULTIPLE CHOICE QUESTIONS: (50%) 誠 實 是 我 們 珍 視 的 美 德, 我 們 喜

More information

Financial Accounting Review of Chapters 9, 10, 11, 12 and Appendix A Answer Key

Financial Accounting Review of Chapters 9, 10, 11, 12 and Appendix A Answer Key Supplemental Instruction Handouts Financial Accounting Review of Chapters 9, 10, 11, 12 and Appendix A Answer Key 1. On December 31, 2011, at the end of the current accounting period for Apex Company,

More information

Accounting Norms and Principles January 7, 2003

Accounting Norms and Principles January 7, 2003 1 Accounting Norms and Principles January 7, 2003 The purpose of an accounting system is to provide credit union management with complete and accurate financial information that can be used to operate

More information

13 BUSINESS ACCOUNTING STANDARD INTANGIBLE ASSETS I. GENERAL PROVISIONS

13 BUSINESS ACCOUNTING STANDARD INTANGIBLE ASSETS I. GENERAL PROVISIONS APPROVED by Resolution No. 1 of 18 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania (Revised version of Order No. VAS-8 of 20 November

More information

a. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000.

a. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000. 注 意 1. 本 試 題 卷 共 50 題, 總 分 100 分 第 01-15 題, 每 題 1.75 分, 合 計 26.25 分 ; 第 16-35 題, 每 題 2 分, 合 計 40 分 ; 第 36-50 題, 每 題 2.25 分, 合 計 33.75 答 錯 不 倒 扣 2. 請 將 答 案 按 試 題 題 號, 依 序 填 入 答 案 卡 1.FastForward had cash

More information

Introductory Financial Accounting Course Outline

Introductory Financial Accounting Course Outline Aboriginal Financial Officers Association of Alberta Introductory Financial Accounting Course Outline ACCT 210: INTRODUCTORY FINANCIAL ACCOUNTING I... 1 ACCT 240: INTRODUCTORY FINANCIAL ACCOUNTING II...

More information

Test 3 Review. Student:

Test 3 Review. Student: Test 3 Review Student: 1. A credit sale of $2,500 to a customer would result in: A. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts

More information

Cash and Receivables. Chapter. Learning Objectives. Nature and Composition of Cash. Additional Cash Issues

Cash and Receivables. Chapter. Learning Objectives. Nature and Composition of Cash. Additional Cash Issues Learning Objectives Cash and Receivables No substantial departures from the text, Chapter 7. Chapter 7 7-1 UCSB, Anderson 7-2 UCSB, Anderson Nature and Composition of Cash Cash is classified as a... Current

More information

CHAPTER 10. Acquisition and Disposition of Property, Plant, and Equipment 1, 2, 3, 5, 6, 11, 12, 21 11, 15, 16 8, 9, 10, 11, 12

CHAPTER 10. Acquisition and Disposition of Property, Plant, and Equipment 1, 2, 3, 5, 6, 11, 12, 21 11, 15, 16 8, 9, 10, 11, 12 CHAPTER 10 Acquisition and Disposition of Property, Plant, and Equipment ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Valuation

More information

Unit 6 Receivables. Receivables - Claims resulting from credit sales to customers and others goods or services for money,.

Unit 6 Receivables. Receivables - Claims resulting from credit sales to customers and others goods or services for money,. Unit 6 Receivables 7-1 Receivables - Claims resulting from credit sales to customers and others goods or services for money,. Oral promises of the purchaser to pay for goods and services sold (credit sale;

More information

Acct 3110 Qualifying Exam Sample Questions as of May 31, 2016

Acct 3110 Qualifying Exam Sample Questions as of May 31, 2016 Acct 3110 Qualifying Exam Sample Questions as of May 31, 2016 1. The primary objective of financial reporting is to provide financial information about the reporting company that is useful: *a. to existing

More information

CHAPTER 9 ACCOUNTING FOR RECEIVABLES

CHAPTER 9 ACCOUNTING FOR RECEIVABLES CHAPTER 9 ACCOUNTING FOR RECEIVABLES LEARNING OBJECTIVES 1. IDENTIFY THE DIFFERENT TYPES OF RECEIVABLES. 2. EXPLAIN HOW COMPANIES RECOGNIZE ACCOUNTS RECEIVABLE. 3. DISTINGUISH BETWEEN THE METHODS AND BASES

More information

Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle

Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Page 1 of 27 Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Overview In Module 2 you studied the fundamental steps in recording accounting information by

More information

Chapter 9 Receivables

Chapter 9 Receivables Accounting I John Petroff, Nancy Paz, Tibebe Mengistu, and KAREN DE AVILA (2011) Chapter 9 Receivables INTRODUCTION TO RECEIVABLES Receivables are any monetary claims against debtors. Credit can be granted

More information

CHAPTER 7 ACCOUNTING FOR RECEIVABLES

CHAPTER 7 ACCOUNTING FOR RECEIVABLES CHAPTER 7 ACCOUNTING FOR RECEIVABLES Key Terms and Concepts to Know Accounts Receivable: Result from sales on account (credit sales), not cash sales. May also result from credit card sales if there is

More information

Intermediate Accounting

Intermediate Accounting Intermediate Accounting Thomas H. Beechy Schulich School of Business, York University Joan E. D. Conrod Faculty of Management, Dalhousie University PowerPoint slides by: Bruce W. MacLean, Faculty of Management,

More information

Lebanese Association of Certified Public Accountants - IFRS December Exam 2015

Lebanese Association of Certified Public Accountants - IFRS December Exam 2015 MULTIPLE CHOICE QUESTIONS ( 45 %) Lebanese Association of Certified Public Accountants - IFRS 1. Which of the following is an ethical concern of accountants? a. Earnings manipulation. b. Conservative accounting.

More information

02.Murray Company debited Prepaid Insurance for $960 on July 1, 1998 for a one-year

02.Murray Company debited Prepaid Insurance for $960 on July 1, 1998 for a one-year 八 十 八 學 年 度 會 計 學 考 古 題 題 目 難 易 的 順 序 ( 難 易 ) 為 : I III II I Multiple Choice (74%) 01.The purchase of office equipment for $15,000 cash a. is a cash outflow from financing activities. b. is a cash outflow

More information

Intermediate Stage September 2008 Examination. Financial Accounting & Reporting (FAR / 601)

Intermediate Stage September 2008 Examination. Financial Accounting & Reporting (FAR / 601) Copyright Reserved Serial No Intermediate Stage September 2008 Examination Examination Date : 20 th September 2008 Number of Pages : 07 Examination Time: 9.30a:m.-12.30p:m. Number of Questions: 05 Instructions

More information

Chapter 14. Leases: Lessor Accounting. 2. Definitions 432. 3. Finance leases 433. 3.1 Overview: recognition and measurement 433. 3.

Chapter 14. Leases: Lessor Accounting. 2. Definitions 432. 3. Finance leases 433. 3.1 Overview: recognition and measurement 433. 3. Leases: Lessor Accounting Reference: IAS 17 Contents: 1. Introduction Page 432 2. Definitions 432 3. Finance leases 433 3.1 Overview: recognition and measurement 433 3.2 Disclosure 433 3.3 If the lessor

More information

Glossary of Accounting Terms Peter Baskerville

Glossary of Accounting Terms Peter Baskerville Glossary of Accounting Terms Peter Baskerville Account for or 'bring to account': An accounting phrase used to describe the recording of a financial transaction that is required under the generally accepted

More information

University of Waterloo Final Examination. Term: Fall Year: 2005. Core Concepts of Accounting Information

University of Waterloo Final Examination. Term: Fall Year: 2005. Core Concepts of Accounting Information University of Waterloo Final Examination Term: Fall Year: 2005 Student Name Solution UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s)

More information

SETTING UP YOUR BUSINESS ACCOUNTING SYSTEM

SETTING UP YOUR BUSINESS ACCOUNTING SYSTEM 100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com

More information

KRUG PRACTICE TEST ACCTG 1 - CHAP 8,9 and first part of 10

KRUG PRACTICE TEST ACCTG 1 - CHAP 8,9 and first part of 10 KRUG PRACTICE TEST ACCTG 1 - CHAP 8,9 and first part of 10 PRACTICE TEST -- The following is a practice test for Accounting 1, Chapters 8, 9 and 10a. It is only a representation of what the test could

More information

3. ACCOUNTING. 3.3 Capital Assets 3.3.4 Capital Asset System Accounting

3. ACCOUNTING. 3.3 Capital Assets 3.3.4 Capital Asset System Accounting 3. ACCOUNTING 3.3 Capital Assets 3.3.4 Capital Asset System Accounting 3.3.4.10 Once the capital asset system is in operation, the government needs to make sure that assets which should be capitalized

More information

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system. Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is

More information

ILLUSTRATION 10-1 CAPITALIZATION OF INTEREST COST

ILLUSTRATION 10-1 CAPITALIZATION OF INTEREST COST ILLUSTRATION 10-1 CAPITALIZATION OF INTEREST COST There are seven steps involved in the capitalization of interest. 1. Determine Which Assets Qualify for Capitalization of Interest. Qualifying assets include

More information

CASH FLOW STATEMENT & BALANCE SHEET GUIDE

CASH FLOW STATEMENT & BALANCE SHEET GUIDE CASH FLOW STATEMENT & BALANCE SHEET GUIDE The Agriculture Development Council requires the submission of a cash flow statement and balance sheet that provide annual financial projections for the business

More information