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Accounting > ACC 300 Chapter 5 > Flashcards

ACC 300 Chapter 5 Flashcards

1
Q

Debt investment

A

Ready to sell is current asset

Available for sale are either asset depending on circumstances

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2
Q

Treasury stock

A

Reduction of stockholders equity

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3
Q

Common stock

A

Stockholders equity

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4
Q

Dividends payable

A

Current liability

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5
Q

Accumulated dep equipment

A

P,p and e

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6
Q

Construction in process

A

If constructed by outside company it is inventory for them. If you are constructing it it is ppe

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7
Q

Petty cash

A

Current asset

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8
Q

Interst payable

A

Current liability

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9
Q

Deficit

A

Retained earnings

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10
Q

Equity investment

A

Current asset if expexted to trade within one year

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11
Q

Income tax payable

A

Current liability

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12
Q

Unearned subscriptions revenue

A

Current liability

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13
Q

Work in process

A

Current asset

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14
Q

Salaried and wages payable

A

Current liability

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15
Q

Preferred stock

A

Capitail stock

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16
Q

Goodwill

A

Intanglible assets

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17
Q

Accounts payable

A

Current liability

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18
Q

Buildings

A

Ppe

19
Q

Current maturity of long term debt

A

Current liability

20
Q

Premium on bonds payable

A

Noncurrent liability

21
Q

Allowance for doubtful accounts

A

Current assets

22
Q

Accounts recievable

A

Current assets

23
Q

Cash surrender value of life insurance

A

Investment

24
Q

Notes payable

A

Current liability

25
Q

Supplies

A

Current asset

26
Q

Bond sinking fund

A

Investments

27
Q

Bonds payable

A

Noncurrent liabily

28
Q

Similarities for GAAP and IFRS

A

Both can title balance sheet or statement of financial position, both require comparitice prior period info and prepared annually, require presentation of non controlling interest in equity section

29
Q

Differences for GAAP and IFRS

A

Ifrs has current assets listed in reverse order of liquidity, many differences in terminology, reserve isnt used in gaap

30
Q

Current cash debt coverage ratio

A

Net cash provided by operating/average current liabilies

31
Q

Cash debt coverage ratio

A

Net cash provided by operating activities/average total liabilities

32
Q

Free cash flows

A

Cash provided by operating-capital expenditures-dividends

33
Q

Working capital

A

Current assets-current liabilities

34
Q

EPS

A

Net income-perferred dividends/weighted average of common shares outstanding

35
Q

Usefulness of the balance sheet

A

Provides info about assets liabilites and equity, aids in assesting risk and predicting future cash flows, evaluation of liquidity solvency and financial flexibility

36
Q

Limiations of balance sheets

A

Most assets and liabilities are reported at historical cost not fair value, judgements must be utilized in determining collectibility, useful life, and returns

37
Q

Current assets

A

Cash and other assets a company expects to covert into cash, sell, or consume either in one year or operating cycle

38
Q

Current liabilities

A

Obligations that are reasonablu expected to be liquidated though the use of current assets or the creation of other current liabilites

39
Q

Long term liabilities

A

Obligations that are not reasonaly expected to be liquited within the normal operating cycle

40
Q

Purpose of the statement of cash flows

A

Is to provide relevent info about the cash receipts and cash payments of a company during a period

41
Q

Significant noncash activites

A

Reported in either a separate schedule at the bottom or in a note

42
Q

Current cash debt coverage

A

Used to determine whether a company can pay off its current liabilities from its operating activities. Evaluates financial liquidity

43
Q

Cash debt coverage

A

Used to determine whether a company can repay its liabilities from its operating activities. It evaluates financial flexibility

44
Q

Free cash flows

A

Used to determine the discretionary cash flow a company has to purchase additional investments retire debt purchase treasury stock or ass to its liquidity

Accounting (30 decks)

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