Directions: Match the terms in Column A with the correct definition in Column B. You may choose more than one a. one answer from Column B. Column A Column B 1. Principal A. time money is borrowed 2. Term B. amount paid or earned for the use of money 3. Interest C. percentage of increase of investment 4. Maturity Value D. amount of money borrowed or investment 5. Interest rate E. amount added by the lender, to be received on repayment date F. amount received on repayment date

Directions: Match the terms in Column A with the correct definition in Column B. You may choose more than one a. one answer from Column B. Column A Column B 1. Principal A. time money is borrowed 2. Term B. amount paid or earned for the use of money 3. Interest C. percentage of increase of investment 4. Maturity Value D. amount of money borrowed or investment 5. Interest rate E. amount added by the lender, to be received on repayment date F. amount received on repayment date

Name: LETS START I. Matching type:Directions: Match the terms in Column A w
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Description: LETS START I. Matching type:Directions: Match the terms in Column A with the correct definition in Column B. You maychoose more than one a. one answer from Column B.ANSWERColumn AColumn B1. PrincipalA. time money is borrowed2. TermB. amount paid or

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 2E: List the classification of each of the following accounts as A (asset), L (liability), OE (owners...

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Direction: Analyze the transactions carefully. Draw four columns as showed in the illustration below. 1. Place the amount on a particular column that affected by the transaction. Use parentheses for decreases. 2. After answering all transactions, compute the total amount of assets, liabilities, and capital. Note: amount with parentheses means deduction in the amount of particular column where it is included. 3. Determine the total assets, same with total liabilities and capital. 4. Add the total liabilities and the total capital. check if assets is equal to liabilities and capital.
Identify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “−” and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (−) along with dollar amounts. The first transaction is completed as an example.
Which business transaction will affect the quick ratio? a. Purchase a fixed asset with money borrowed long term b. Liquidate a temporary investment and put the money in a checking account c. Sell some inventory and use the cash immediately to buy a fixed asset d. Make a payment to a vendor on an account payable
Compound entries A. would include an entry to record the purchase of n computer for cash. B. include al least two debits or two credits. C. require thut all credits be listed before the debits for entries allecting the statement of financial position. D. should be broken into their component parts and recorded as simpic entries.
Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payable
Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.
List the classification of each of the following accounts as A (asset), L (liability), OE (owners equity), R (revenue), or E (expense). Write Debit or Credit to indicate the increase side, the decrease side, and the normal balance side.
Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Understandability Relevance Faithful representation Comparability Depreciation Consistency Materiality Conservatism Operating cycle Current asset Current liability Liquidity Working capital Current ratio Single-step income statement Multiple-step income statement Gross profit Profit margin Auditors report An income statement in which all expenses are added together and subtracted from all revenues. The magnitude of an accounting information omission or misstatement that will affect the judgment of someone relying on the information. The capacity of information to make a difference in a decision. An income statement that shows classifications of revenues and expenses as well as important subtotals. The practice of using the least optimistic estimate when two estimates of amounts are about equally likely. The quality of accounting information that makes it comprehensible to those willing to spend the necessary time. Current assets divided by current liabilities. The quality of information that makes it complete, neutral, and free from error. An obligation that will be satisfied within the next operating cycle or within one year if the cycle is shorter than one year. Current assets minus current liabilities. Net income divided by sales. For accounting information, the quality that allows a user to analyze two or more companies and look for similarities and differences. An asset that is expected to be realized in cash or sold or consumed during the operating cycle or within one year if the cycle is shorter than one year. The ability of a company to pay its debts as they come due. For accounting information, the quality that allows a user to compare two or more accounting periods for a single company. The process of allocating the cost of a long-term tangible asset over its useful life. The period of time between the purchase of inventory and the collection of any receivable from the sale of the inventory. Sales less cost of goods sold. The opinion rendered by a public accounting firm concerning the fairness of the presentation of the financial statements.
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
Identify the missing information from the accounting equation. Signify increases as Incr. and decreases as Decr. In each box you have the options: -Assets -Credit -Debit -Decr. -Equity -Incr. -Liabilities -Owner, Withdrawals
Answer the following questions correctly and show your Complete Solution. a. 3 1/5% is equivalent to b. Find the actual time and approximate time from October 5, 2020 to June 30, 2021 c. Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.
Analyze the statement given then choose if the effect on account will Increase or Decrease it. Afterwards, write your answer before the number. Interest revenue that is entered in the credit side. Prepaid expense that is entered in the debit side. Interest payable that is entered in the debit side. Salaries expense that is entered in the credit side. Prepaid rent that is entered in the credit side. Unearned revenue that is entered in the debit side. Deferred revenue that is entered in the debit side. Interest expense that is entered in the credit side. Accrued liability that is entered in the debit side. Accumulated depreciation that is entered in the credit side.