ACC 356 EXAM 1 Chapters 1-4 Verified Study Questions And Answers
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Course
ACC 356
Institution
ACC 356
ACC 356 EXAM 1 Chapters 1-4 Verified Study Questions And Answers
neutrality ANS accounting information should be unbiased
comparability ANS important in analysis between firms
consistency ANS applying the same accounting practices over time
cost-effectiveness ANS considers the value o...
ACC 356 EXAM 1 Chapters 1-4 Verified Study
Questions And Answers
neutrality ANS accounting information should be unbiased
comparability ANS important in analysis between firms
consistency ANS applying the same accounting practices over time
cost-effectiveness ANS considers the value of using information relative to cost of providing it
recognition ANS the decision to include an amount in the financial statements
Which of the following is not true about net operating cash flow? ANS b) it is a measure used in accrual
accounting and is recognized as the best predictor of future operating cash flows
Elements of financial statements do not include ANS monetary unit
The following information comes from a recent annual report of Orinoco.com
Incorporated:
Net Sales $10,800
Total Assets $4,382
End of year balance in cash $1,220
Gross Profit (Sales - costs of sales) $2,550
Net increase in cash for the year $20
Operating Expenses $2,058
Net operating cash flow $695
Other income (expense), net ($18)
Compute Orinoco's cost of goods sold for the year ANS explanation: Sales - COGS = Gross profit
, 10,800 - x = 2550
x = 8,250
unadjusted trail balance ANS a list of general ledger accounts and their balances at a particular date after
recording all transactions during the period but before any adjusting entries
accrued receivables ANS revenue recognized before cash is received
deferred revenue ANS cash received from a customer in advance of providing a good or service
temporary accounts ANS changes in the retained earnings component of shareholders' equity
accrued liabilites ANS expenses incurred but not yet paid
adjusting entries ANS records the effects of internal transactions
prepaid expenses ANS asset recorded when an expense is paid for in advance
general ledger ANS collection of storage areas, called accounts
revenues ANS refers to inflows of assets from the sale of goods and services
post-closing trial balance ANS a list of all permanent accounts and their balances after closing entries have been
recorded
purchased $8,200 of inventory on account ANS Inventoy $8200
A/P $8200
paid weekly salaries, $920 ANS salary expense $920
cash $920
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