What does the acronym GAAP stand for in the context of accounting? General Accounting and Auditing Practices General Accepted Auditing Procedures Generally Accepted Accounting Principles Global Accounting and Auditing Principles

Generally Accepted Accounting Principles

Which of the following best describes accounting as an information system? A method for calculating taxes owed by a business An information system that identifies, records, and communicates the economic events of an organization to interested users A process for managing employee payroll A system that only records financial transactions

An information system that identifies, records, and communicates the economic events of an organization to interested users

What are the three major types of business entities? Corporations, limited liability companies, and partnerships Corporations, partnerships, and sole proprietorships Partnerships, joint ventures, and corporations Sole proprietorships, cooperatives, and franchises

Corporations, partnerships, and sole proprietorships

What is the Basic Accounting Equation? Assets = Liabilities + Stockholder Equity Assets = Liabilities - Stockholder Equity Assets + Liabilities = Stockholder Equity Assets - Liabilities = Stockholder Equity

Assets = Liabilities + Stockholder Equity

What is the periodicity assumption in accounting? Transactions are recorded only when cash is exchanged Businesses operate indefinitely Financial statements are prepared only once a year The economic life of a business can be divided into artificial time periods

The economic life of a business can be divided into artificial time periods

Comprehensive Accounting Principles and Practices Flashcards for Mastery

Flashcard

Learn Mode

Match

Library

Create

Flashcards

Library

Match (Coming Soon)

Finance - Personal Finance

michael1tekrzp Created by 10 mon ago

Cards in this deck(100)

What does the acronym GAAP stand for in the context of accounting?

Which of the following best describes accounting as an information system?

What are the three major types of business entities?

Which of the following external groups uses accounting information to determine whether a company can pay its obligations?

What is the Basic Accounting Equation?

Jackson Cement Corporation reported $35 million for sales when it only had $20 million of actual sales. Which quality of useful information has Jackson most likely violated?

In what order are assets listed on the Balance Sheet?

Which of the following is considered a financing activity?

Which of the four financial statements is most useful for determining if a company's operations were profitable during a given period?

What is the periodicity assumption in accounting?

Which of the following accounts is not considered an asset?

Which of the following is considered a profitability ratio?

In which balance sheet section would trademarks appear?

What is the correct order of presentation for the following current assets on a classified balance sheet: cash, inventory, accounts receivable, prepaid insurance?

Which of these is considered the more dependable measure of liquidity?

Which of the following represent(s) claims to economic resources of a company?

Where would accounts payable appear on the financial statements?

Which of the following items has no effect on retained earnings?

Which of these is considered a solvency ratio?

The Income Statement shows the company's net income for the period by itemizing which of the following?

Where should accounts receivable appear on the financial statements?

What is the effect of dividends paid to the stockholders?

What is the effect of purchasing an asset (e.g., equipment) using cash?

What are the two fundamental qualities that make financial information 'useful' according to the FASB and IASB conceptual framework?

Are prepaid amounts received from customers treated as revenue at the time of receipt? Why or why not?

As of December 31, 2025, Rockford Corporation has assets of $3,500 and stockholders' equity of $1,500. What are the liabilities for Rockford as of December 31, 2025?

The Financial Statement for Gibson Company contained the following information: Accounts receivable $5,000, Sales revenue $75,000, Cash $15,000, Salaries and wage expense $20,000, Rent expense $10,000. What was Gibson Company's net income?

During 2025, Gibson Company assets decreased $50,000 and its liabilities decreased $130,000. What happened to Gibson Company's stockholders' equity?

If total liabilities decreased by $4,000, then what must have happened to either assets or stockholders' equity?

Kingery Corporation has current assets of $1,800,000 and current liabilities of $750,000. If they pay $350,000 of their accounts payable, what will their new current ratio be?

K2 Corporation has assets of $3,600,000, common stock of $936,000, and retained earnings of $570,000. What are the creditors' claims on their assets?

Sullivan Coffee Co. posted the following financial information for 2027: Current Assets: $15,500, Total Assets: $435,000, Current Liabilities: $25,400, Total Liabilities: $110,000, Net Income: $50,000. What is the Working Capital for Sullivan Coffee Co.?

What is the Current Ratio for Sullivan Coffee Co. given the financial information: Current Assets: $15,500, Current Liabilities: $25,400?

What is the Debt to Assets Ratio for Sullivan Coffee given the financial information: Total Assets: $435,000, Total Liabilities: $110,000?

From the data for the year 2027, Sullivan coffee appears to have what financial condition?

List the 3 main functions that contribute to fraudulent activity by an employee.

Are retailers and wholesalers both considered merchandising enterprises?

Are adjustments necessary if the basic accounting equation balances?

Is the safeguarding of assets an objective of a company's system of internal control?

Do only large companies need to be concerned with a system of internal control?

Is a basic principle of cash management to increase the speed of paying?

Does the term FOB shipping point mean that the seller is paying the freight costs?

Franklin Company shipped goods to Henry Company with terms FOB. Is this statement true?

An Accountant who records a transaction only when cash is received or disbursed is using which basis of accounting?

What basis of accounting does GAAP require businesses to use?

What are the advantages of cost in relation to cash and information?

Which principle dictates that companies recognize revenue in the accounting period in which the performance obligation is met?

Each of the following is a major type (or category) of adjustment except:

Adjustments are made at the end of an accounting period to ensure what?

Unearned Revenue is classified as a(n):

An accounting time period that is one year in length is called what?

When are expenses recognized?

An asset-expense relationship exists with which type of adjustment?

Internal control is defined, in part, as a plan that safeguards what?

The principles of internal control do not include which of the following?

Physical controls do not include which of the following?

The use of pre-numbered checks in disbursing cash is an application of which principle?

From an internal control standpoint, which asset is most susceptible to improper diversion and use?

Which statement correctly describes the reporting of cash?

Which of the following would not be included in the definition of cash?

As it relates to Checks and Bank Statements, what does the acronym NSF stand for?

What does a bank statement show?

What is the largest (in dollars) expense category on the Multi-Step Income Statement of most merchandising (retail) companies?

Gross Profit will result if:

The gross profit rate is equal to:

Which of the following would affect the gross profit rate, assuming that sales remain constant?

Which of the following expressions is incorrect?

The multiple-step income statement for a merchandiser shows each of the following features except:

A merchandiser will earn an operating income of $0 when:

Inventory becomes part of cost of goods sold when a company does what?

If a company determines cost of goods sold each time a sale occurs, it is using which inventory system?

In the credit terms of 1/10, n/30, what does the '1' represent?

A purchase invoice is a document that does what?

The unadjusted account balances show Supplies: $1,350 and Supplies Expense: $0. If $750 of supplies are on hand at the end of the period, what is the adjustment?

Sierra Corporation purchased supplies costing $5,000 on January 15. Sierra recorded the purchase by increasing Supplies and decreasing Cash. A physical count at the close of business on December 31 reveals that $2,000 of supplies are still on hand. If Sierra does not make an adjustment on December 31, by what amount will net income be incorrect?

On January 1, 2027, M. Johanson Company purchased equipment for $54,000. The company is depreciating the equipment at the rate of $750 per month. What is the value of the equipment on December 31, 2027?

Colleen Mooney earned a salary of $400 for the last week of September. She will be paid on October 1. What is the adjustment for Colleen's employer on September 30?

Phillips Tool and Die Company bought $72,000 of equipment with an estimated service life of 6 years. They believe that the equipment will be worthless at the end of its service life. What is the annual amount of depreciation expense on this equipment?

Phillips Tool and Die Company paid six months' rent in advance totaling $9,000. At the end of the three months, what would the adjusting entries include?

Sierra Corporation signed a 12-month, 12% note payable in the amount of $5,000 on September 1. What should Sierra's adjusting entry be to its Interest Payable account in order to account for the accrued interest on December 31?

Conway Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30. What is the cost of the goods if Conway Company pays within the discount period?

A credit sale of $3,800 is made on April 25, terms 2/10, n/30. A return of $200 is granted on April 28. What amount will be received as payment in full by the seller if collected on May 4?

Recording the receipt of payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include what?

During the year ended December 31, 2025, Bjornstad Corporation had the following results: net sales, $267,000, cost of goods sold $107,000, net income $92,400, operating expenses $55,400, and net cash provided by operating activities $108,950. What was the company's profit margin?

Financial information is presented here: Operating expenses- $45,000, Sales returns and allowances- $3,000, Sales discounts- $7,000, Sales revenue- $160,000, Cost of goods sold- $96,000. What is the amount of Net Sales reported on the income statement?

Financial information is presented here: Operating expenses- $40,000, Sales revenue- $200,000, Cost of goods sold- $150,000. What is the Gross Profit?

Financial information is presented here: Operating expenses- $40,000, Sales revenue- $200,000, Cost of goods sold- $150,000. What is the Gross Profit Rate?

Financial information is presented here: Operating expenses- $40,000, Sales revenue- $200,000, Cost of goods sold- $150,000. What is the Profit Margin?

Cost of goods available for sale consists of two elements: beginning inventory and what?

What is the accounting principle that requires the cost flow assumption to be consistent with the physical movement of goods?

In a period of rising prices, which of the following inventory methods generally results in the lowest amount of net income?

Two companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, which company will have the highest ending inventory?

The account Allowance for Doubtful Accounts is classified as a(n):

The inventory turnover is calculated by dividing cost of goods sold by what?

Days in inventory is calculated by dividing 365 days by what?

Which of these would cause the inventory turnover ratio to increase the most?

Depreciation is a process of what?

Which of the following measures provides an indication of how efficient a company is in employing its assets?

If a company reports goodwill as an intangible asset on its books, what is the one thing you know with certainty?

Which one of the following items is not a consideration when recording periodic depreciation expenses on plant assets?

Ask Our AI Tutor

Get Instant Help with Your Questions

Need help understanding a concept or solving a problem? Type your question below, and our AI tutor will provide a personalized answer in real-time!

How it works

Ask any academic question, and our AI tutor will respond instantly with explanations, solutions, or examples.

Get Started

Browse questions and discover topic-based flashcards
Practice with engaging flashcards designed for each subject
Strengthen memory with concise, effective learning tools

Discover By Topic

Comprehensive Accounting Principles and Practices Flashcards for Mastery

Related Decks