chapter 2 Flashcards

1
Q

What is the left side?

A

debit

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2
Q

What is the right side?

A

credit

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3
Q

What goes on the classified balance sheet?

A

assets, current assets, liabilities, current liabilites, stockholders equity

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4
Q

Current assets

A

a company’s short term investments that are expected to be used or converted to cash within one year.

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5
Q

examples of current assets

A

accounts recievable, cash, inventory, supplies, prepaid expenses.

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6
Q

How are current assets listed?

A

in the order they expect to convert them to cash.

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7
Q

Intangible assets definition

A

assets that do not have physical substance

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8
Q

current liabilities definition

A

Obligations the company is to pay within the next year

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9
Q

examples of current liabilities

A

accounts payable, salaries and wages payable, notes payable, interest payable

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10
Q

whats the difference between a non current asset and a current.

A

The length of time used. Current assets are short time and non current assets are long term.

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11
Q

Where does COGS go on the income statement?

A

under expenses

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12
Q

current ratio equation

A

current assets/current liabilities

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13
Q

earnings per share equation

A

net income-preffered dividends/weighted-average common shares outstanding

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14
Q

Accounts payable

A

owed to suppliers for goods or services bought on credit

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15
Q

notes payable

A

owed to lenders as per terms of a promissory note

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16
Q

Debit and credit for assets

A

debit going up credit going down

16
Q

debit and credit for liabilities

A

debit going down credit going up

17
Q

what does property plant and equipment include

A

land and land improvements, buildings, machinery and equipment, molds cores and rings, less:accumulated depreciation

17
Q

debit and credit for stockholders equity

A

debit going down credit going up

18
Q

long term liabilitie accounts

A

bonds payable, mortgages payable, long-term notes payable, less liabilities, and pension liabilities

18
Q

what’s on the left side of T-Accounts

A

Dividends, expenses, assets

19
Q

what’s on the right side of T-Accounts

A

Liabilities, owners equity, and revenues