more exam 2 stuff Flashcards
1
Q
The major elements of the income statement are
A
Revenues, Expenses, Gains, and Losses.
2
Q
Which of the following ratios measures how effectively the company uses its assets?
A
Activity ratios
3
Q
how to account for changes in accounting principles and correction of errors
A
(re-stating prior periods)
4
Q
how to account for changes in estimates
A
only affecting current and future periods
5
Q
Working Capital
A
= Current Assets – Current Liabilities
6
Q
JE collection of AR
A
Cash
A/R
7
Q
JE Service charge
A
Office exp
Cash
8
Q
JE Bank credits
A
Cash
Revenue (most likey interest)
9
Q
JE NSF fees
A
A/R
Cash
10
Q
JE intertest Rev
A
Cash
Interest Revenue
11
Q
JE Book error
A
Cash
Receivable/Reveune
