Study guides, Class notes & Summaries

As of December 31, 2015, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2015? - $22,000. $42,000 - $20,000 = $22,000 If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period? - $10,000 decrease $20,000 - $30,000 = ($10,000) The accounting equation for Quattr...

As of December 31, 2015, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2015? - $22,000. $42,000 - $20,000 = $22,000 If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period? - $10,000 decrease $20,000 - $30,000 = ($10,000) The accounting equation for Quattr...

Revenues - Answer-Gross increase in equity from a company's business activities that earn income; also called sales. Expenses - Answer-Outflows or using up of assets as part of operations of a business to generate sales. Accounts Receivable - Answer-Amounts to be received in the future due to the sale of goods or services Accounting Equation - Answer-Assets = Liabilities + Equity Income Statement - Answer-describes a company's revenues and expenses along with the resulting net income or ...

Financial Accounting CH1: Tools for Business Decision Making Exam Sole Proprietorship - answerA business owned by one person: -Simple to Establish -Owner-controlled -Tax advantages -personal legal liability Partnership - answera business owned by two or more people: -Simple to establish -shared control -Broader skills and resources -Tax advantages -personal legal liability Corporation - answerA business owned by stockholders who share in its profits but are not personally responsib...

Financial Accounting: Tools for Business Decision Making - Chapter 8 Exam 100% Solved Accounts receivable - answerAmounts customers owe on account. Accounts receivable turnover - answerA measure of the liquidity of accounts receivable, computed by dividing net credit sales by average net accounts receivable. Aging the accounts receivable - answerA schedule of customer balances classified by the length of time they have been unpaid. Allowance method - answerA method of accounting for bad ...

Financial Accounting: Tools for Business Decision Making - Chapter 4 Exam 100% Solved Accrual-Basis accounting - answerAccounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged. Accrued expenses - answerExpenses incurred but not yet paid in cash or recorded. Accrued revenues - answerRevenues for services performed but not yet received in cash or recorded. Adjusted trial...

Financial Accounting: Tools for Business Decision Making - Chapter 6 Exam Inventory turnover - answerA ratio that indicates the liquidity of inventory by measuring the number of times average inventory is sold during the period; computed by dividing cost of goods sold by the average inventory during the period. Days in inventory - answerMeasure of the average number of days inventory is held; calculated as 365 divided by inventory turnover. Average-cost method - answerAn inventory costing...

Financial accounting tools for business decision making chapter 2 Exam Classified Balance Sheet - answerA balance sheet that groups together similar assets and similar liabilities, using a number of standard classifications and sections. current assets - answercash and other assets expected to be exchanged for cash or consumed within a year Operating Cycle - answerThe time span during which cash is paid for goods and services, which are then sold to customers from whom the business collec...