OSU ACCTMIS 2200 EXAM 2 QUESTIONS AND ANSWERS 100% PASS

OSU ACCTMIS 2200 EXAM 2 QUESTIONS
AND ANSWERS 100% PASS




Operating Activities - ANS Cash effect of:
1 Revenues
2 Expenses
3 Interest Expense AND DIVIDENDS RECEIVED (revenue)


Investing Activities - ANS Cash flows for:
1 P-P-E
2 Intangibles
3 Buying/ selling stock (investments)


Financing Activities - ANS Received from or paid to stockholders/ creditors
Inflows:
Notes payable
1 received from loans
2 received from sale of common stock
Outflows:
1 PAID for dividends
2 cash paid as the principle repayment on loans (not with interest)




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, How to calculate expenses payable - ANS Beginning Balance + x expense - cash paid for x =
End Balance


Direct Method - ANS List each specific cash flow


Indirect method - ANS Net income
+ Depreciation Expense
+ Losses
- Gains
+ Decreases in assets
+ Decreases in liabilities
- Increases in Assets
- Increases in Liabilities
= Net Income with Cash Accounting


Sales Discount : 2/10, n/30 - ANS 2% discount on all purchases made within 10 days, after
that no discount and balance is due in 30 days


Net Realizable Value (NRV) = - ANS = Accounts Receivable - Allowance for doubtful accounts


Average Collection Period = - ANS 365/ Accounts Receivable Turnover


Accounts Receivable turnover = - ANS Net sales revenue/ Average Accounts receivable


What does the aging method yield - ANS End balance for allowance for doubtful accounts
(not bad debt expense)


Accounts Receivable t-account = - ANS Beginning balance + Sales Revenue - Cash received
from customers = end balance


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