Intro to Financial Accounting Final Exam Flashcards
Which of the following does a check classify as?
A. Cash
B. Cash Equivalent
C. other
A. Cash
Which of the following does a check in need of a deposit classify as?
A. Cash
B. Cash equivalent
C. Other
A. Cash
Which of the following does a 60-day US treasury bill classify as?
A. Cash
B. Cash equivalent
C. Other
B. Cash equivalent
Which of the following does a six-month commercial paper classify as?
A. Cash
B. Cash equivalent
C. other
C. Other - Short term investment
Which of the following does a savings account classify as?
A. Cash
B. Cash equivalent
C. Other
A. Cash
Which of the following does an employee’s loan/IOU classify as?
A. Cash
B. Cash equivalent
C. Other
C. Other - Note receivable
Which of the following does a 3-month commercial paper classify as?
A. Cash
B. Cash equivalent
C. Other
B. Cash equivalent
How to compute net revenue?
Revenue - contra revenue
Which of the following is NOT a contra revenue?
A. Sales returns
B. Sales discounts
C. Sales loans
D. Sales Allowances
C. Sales Loans
Beginning Inventory + Purchases - Ending Inventory = ?
Cost of Goods Sold
Net Sales - Cost of Goods Sold = ?
Gross Profit
(Beginning Inventory + Purchases = Ending Inventory + Cost of Goods Sold) ?
Goods Available for Sale
Gross Profit - operating expenses = ?
Operating income
Operating income - non operating revenues/expenses = ?
Income before tax
Income before tax - Income tax expense = ?
Net income
Gross Profit / Net sales = ?
Gross Profit Ratio
A liability that will be paid within the current operating cycle, or 1 year (whichever is longer)
Current Liability
A liability that is recorded at the cash equivalent amount (PV)
Non-current liabilities
What formula is the result of Principle x Rate x Time
Interest formula
Which of the following is responsible for payroll liabilities?
A. Employers
B. Employees
C. Both D. Neither
A. Employers
Which of the following is NOT a Payroll Liability?
A. fringe benefits
B. expenses
C. salaries
D. taxes
B. expenses
The principal amount of the debt coming due within a year of the balance sheet date
Current Portion of Long-Term Debt
Contingent liabilities are reported on the financial statements and disclosed if they
A. Can’t be estimated and are probable
B. Can be estimated and are probable
C. Reasonably possible regardless of estimation
B. Can be estimated and are probable
Contingent liabilities are only disclosed in notes if they are
A. Probable and reasonably estimated
B. Probable and not estimated
C. Reasonably possible regardless of estimation
D. Both B and C
D. Both B and C
Current Assets / Current Liabilities = ?
Current Ratio
“A dollar today is worth more than a dollar in the future” ?
Time Value of Money (TVM)
A constant dollar amount occurs at the same time of each period.
A. Annuity
B. Single Sum
A. Annuity
A dollar amount that can occur at any time and isn’t constant regardless of time and period.
A. Annuity
B. Single Sum
B. Single Sum