ACCT 212 (ACCT212)

Informative 8 step guide on starting the accounting cycle including word problems.

Summary of all keywords, terms, definitions, and word problems for financial accounting

Why are adjustments made to the accounting records at the end of the period? (1/9) - ANS To ensure assets and liabilities are reported at appropriate amounts. To ensure the related revenues and expenses are reported in the proper period. Deferral adjustments are needed when the business: - ANS Pays cash before the expense has been incurred Receives cash before the revenue has been generated On September 1, Year 1, Hales Company paid its rent in advance for the months of October, N...

what is created when companies... -Buys goods and services on credit -Obtains short-term loans -Issues long-term debt - ANS liabilities! short-term obligations that will be paid with current assets within the company's current operating cycle or within one year of the balance sheet date, whichever is longer. - ANS current liabilities Liabilities that have been incurred but not yet paid - ANS accrued liabilities Increase (credit) or decrease (debit) accounts payable... w...

Activity-Based Costing (ABC) - ANS A two-stage costing method in which overhead costs are assigned to products on the basis of the activities they require. Activity - ANS An event that causes the consumption of overhead resources. Activity Cost Pool - ANS A "bucket" in which costs are accumulated that relate to a single activity measure in an activity-based costing system. Activity Measure - ANS An allocation base in an activity-based costing system: ideally, a measure of ...

for a merchandising company - ANS the income statement reports the cost of the inventory sold During the period another term for gross profit - ANS gross margin a periodic inventory system - ANS D all of the above, is used for inexpensive Goods, is not an expensive to maintain, does not keep a running record of inventory on hand all of the following costs would be included in inventory except - ANS advertising the specific unit cost method - ANS is also known as the sp...

If the factory overhead is overapplied, then: (Check all that apply.) applied overhead costs > actual overhead costs. the Factory Overhead account has a credit balance. Match the following activities to their effect on the general ledger accounts. Allocate indirect labor - Credit Factory Wages Payable Pay factory property tax - Debit Factory Overhead Purchase materials - Debit Raw Materials Inventory Use direct materials - Credit Raw Materials Inventory Complete job - De...

Recognition - ANS The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like Historical Cost - ANS The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets Current value - ANS The amount of cash or its equivalent that could be received by selling an asset currently Cash basis - ANS A system of accounting in which revenues are recognized when ...

Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information: November 30 Debit Credit Supplies $2,000 Prepaid Insurance 8,000 Salaries Payable $11,000 Deferred Revenue 3,000 The following information is known for the month of December: 1. Purchases of supplies during December total $4,500. Supplies on hand at the end of December equal $3,500. 2. No insurance payments are made in December. In...