Financial accounting Study guides, Class notes & Summaries

Financial Accounting: Tools for Business Decision Making - Chapter 4 Exam 100% Solved Accrual-Basis accounting - answerAccounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged. Accrued expenses - answerExpenses incurred but not yet paid in cash or recorded. Accrued revenues - answerRevenues for services performed but not yet received in cash or recorded. Adjusted trial...

Financial Accounting: Tools for Business Decision Making - Chapter 6 Exam Inventory turnover - answerA ratio that indicates the liquidity of inventory by measuring the number of times average inventory is sold during the period; computed by dividing cost of goods sold by the average inventory during the period. Days in inventory - answerMeasure of the average number of days inventory is held; calculated as 365 divided by inventory turnover. Average-cost method - answerAn inventory costing...

Financial accounting tools for business decision making chapter 2 Exam Classified Balance Sheet - answerA balance sheet that groups together similar assets and similar liabilities, using a number of standard classifications and sections. current assets - answercash and other assets expected to be exchanged for cash or consumed within a year Operating Cycle - answerThe time span during which cash is paid for goods and services, which are then sold to customers from whom the business collec...

Financial Accounting: Tools for Business Decision Making Chapter 3 Account - answerAn individual accounting record of increases and decreases in specific asset, liability, stockholders' equity, revenue or expense items. Account information system - answerThe system of collecting and processing transaction data and communicating financial information to decision-makers. Accounting transactions - answerEvents that require recording in the financial statements because they affect assets, li...

Accounting tools for business decision making 4th edition chapter 6 Average-cost method - answeran inventory costing method that uses the weighted average unit cost to allocate the cost of goods available for sale to ending inventory and cost of goods sold. Consigned goods - answerGoods held for sale by one party although ownership of the goods is retained by another party Current replacement cost - answerthe cost of purchasing the same goods at the present time from the usual suppliers ...

Financial Accounting: Tools for Business Decision Making - Chapter 5 Exam Comprehensive income - answerAn income measure that includes gains and losses that are excluded from the determination of net income. Comprehensive income statement - answerA statement that presents items that are not included in the determination of net income, referred to as other comprehensive income. Contra revenue account - answerAn account that is offset against a revenue account on the income statement. Cost...

Financial Accounting: Tools for Business Decision Making - Chapter 9 Exam Accelerated-depreciation method - answerA depreciation method that produces higher depreciation expense in the early years than the straight-line approach. Additions and improvements - answerCosts incurred to increase the operating efficiency, productive capacity, or expected useful life of a plant asset. Amortization - answerThe process of allocating to expense the cost of an intangible asset. Asset turnover - answ...

Financial Accounting: Tools for Business Decision Making - Chapter 10 Exam Bond certificate - answerA legal document that indicates the name of the issuer, the face value of the bonds, and other data such as the contractual interest rate and the maturity date of the bonds. Bonds - answerA form of interest-bearing notes payable issued by corporations, universities, and governmental agencies. Callable bonds - answerBonds that the issuing company can redeem (buy back) at a stated dollar amo...

Financial Accounting: Tools for Business Decision Making - Chapter 3 Account - answerAn individual accounting record of increases and decreases in specific asset, liability, stockholders' equity, revenue or expense items. Account information system - answerThe system of collecting and processing transaction data and communicating financial information to decision-makers. Accounting transactions - answerEvents that require recording in the financial statements because they affect assets, ...

Financial Accounting: Tools for Business Decision Making Exam 1 2024 sole proprietorship - answera business owned by one person Pros of a sole proprietorship - answer•It is simple to set up • It gives you control over the business, and • More favorable tax treatment than corporations Cons of forming a sole proprietorship - answerThe proprietor is personally liable for all debts and legal obligations of the business Partnership - answerA business owned by two or more persons associa...