Final Exam Review Flashcards
The depreciation charged by this method decreases by the same amount each year
Straight-line depreciation
These methods are used for depreciating multiple-asset accounts
Group and composite method
These methods allocated larger shares of the cost of a plant asset to expense during the years in which the greatest use is made of the asset
Units of output and working hours method
These methods always allocate larger shares of the cost of a plant asset to expense during the earlier years of its life
Declining-balance and sum-of-the-years’-digits method
Once the depreciable base, scrap value, and life of a plant asset are determined, the annual charges to operations under this method will be the same
Straight-line method
accrued salaries and wages
current liabilities
rent revenues for 3 months collected in advance
current liabilities
land used as plant side
plant assets
equity securities classified as trading
current assets
cash
current assets
accrued interest payable due in 30 days
current liabilities
premium on preferred stock issued
additional paid-in capital
dividends in arrears on preferred stock
notes to financial statements
petty cash fund
current assets
unamortized discount on bonds payable due 2022
(long-term liabilities)
common stock at par value
capital stock
bond indenture convenants
notes to financial statements
unamortized premium on bonds payable due in 2026
long-term liabilties
allowance for doubtful accounts
(current assets)
accumulated depreciation - equipment
(plant assets)
natural resource - timberlands
plant assets
deficit (no net income earned since beginning of company)
(retained earnings)
goodwill
intangible assets
90 day notes payable
current liabilities
investment in bonds of another company; will be held to 2024 maturity
investments
land held for speculation
investments
death of company president
not reported on balance sheet
current maturity of bonds payable
current liabilities
investment in subsidiary; no plans to sell in near future
investments
accounts payable
current liabilities
preferred stock ($10 par)
capital stock
prepaid rent
current assets
copyright
intangible assets
accumulated amortization, patents
intangible assets
earnings not distributed to stockholders
retained earnings
arises from peripheral or incidental transactions
gains/losses
obligation to transfer resources arising from a past transaction
liabilities
increases ownership interest
comprehensive income/ investment by owners
declares and pays cash dividends to owners
distribution to owners
increases in net assets in a period from nonowner sources
comprehensive income
items characterized by service potential or future economic benefit
assets
equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners
comprehensive income
arises from income statement activities that constitute the entity’s ongoing major or central operations
revenues/expenses
residual interest in the assets of the enterprise after deducting its liabilities
equity
increases assets during a period through sale of product
revenue
decreases assets during the period by purchasing the company’s own stock
distribution to owners
includes all changes in equity during the period, except those resulting from investments by owners and distribution to owners
comprehensive income
Who sponsors the Accounting Research Bulletins (1953-1959)?
Committee on Accounting Procedure
Who sponsors the Accounting Standards Updates?
Financial Accounting Standards Board
Who sponsors the Emerging Issues Task Force Updates?
Financial Accounting Standards Board
Who sponsors the Statements of Financial Accounting Concepts?
Financial Accounting Standards Board
Who sponsors the Opinions (1962-1973)?
Accounting Principles Board
