Final exam Flashcards
operating activities
cash +revenues and expenses
CA
CL
Investing activities
cash+ asset (productive and noncurrent)
short term notes recievable
Financing activities
cash + noncurrent liability/equity
short term notes payable (equity)
stated>market
stated < market
premium
discount
If you sold a premium, is the insurance expense increasing or decreasing?
decreasing
if you sold a discount , is the insurance expense increasing or decreasing?
increasing
What does interest expense do when there’s a premium or discount?
p: decreases
d: increases
What does carrying value do when there’s a premium or discount?
p: decreases
d: increases
If retirement price> carrying value… what is it and what does it do to interest rate
loss- int rate to increase
If retirement price< carrying value… what is it and what does it do to interest rate
gain- int rate to decrease
What is the amount stockholders have invested in the company?
paid in capitol
What kind of relationship do par value and market value have?
NO direct correlation
Treasury stock is a
contra equity account so it decreases equity
When company buys back its on stock its
treasury stock
List the order of shares from small to large
oustanding, issued, authorized
What shares are the number of shares that a corporation is legally allowed to issue
authorized
what shares have already been issued
outstanding
the number of outstanding shares is always equal to what?
shares issued-# shares repurchased
We record treasury stock when?
at the cost acquired
When you issued dividends does the total equity change?
when theres a cash dividend yes it decreases equity
when div, cs, add’l pic, no
when there’s a stock split…
no journal entrey, but adjust par value
What is no affected by stock splits?
r/e
if there’s no ____, there’s no journal entry
par value
If small stock dividend, use ____ (<20%)
market price
if large stock div, use _____ (>20%)
par value
Inventory is
current asset
Accounts recievable is
current asset
prepaid insurance/expense/rent
current asset
accrued expenses
current liability
Make a list of current liabilities
accounts payable sales tax paybale income taxes payable interest payable customer deposits
Make a list of current assets
Cash, including foreign currency
Prepaid expenses
Accounts receivable
Inventory
when are dividends paid?
on share outstanding
Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends
dividends (d) 500 div payable (c) 500
2000x .25
What happens to preferred shares?
they are paid first and at the preferred rate. Preferred dividends may be cumulative, which means dividends in arrears have to be paid first before current year dividends.
