Contra asset account - Study guides, Class notes & Summaries

Wall Street Prep The Premium Package Review: Accounting & Financial Statement Analysis Exam Latest 2023/2024 Questions and Answers (Score: 95%, 38 correct out of 40). Score: 95%, 38 correct out of 40 Question 1 Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $7 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wage...

Current Assets - Answer Used w/n a year. When used it becomes an expense. E.g. Cash, Accounts Recievable, Supplies, Inventory, Prepaid Insurance Fixed Assets - Answer More permanent. Each fixed asset (except for land) has an Accumulated Depreciation account which is a Contra-asset. Cash flow going into it, is an Investment. E.g. Equipment, land, building Current Liabilities - Answer Paid w/n a year E.g. Accounts payable, Wages payable, unearned revenue. Long-term Liabilities...

Digger Enterprises purchased equipment for $64,000. In addition, shipping charges of $800 were incurred to obtain the equipment. The company paid $5,000 to construct a foundation and install the equipment. The equipment is estimated to have a residual value of $6,000 at the end of its 5-year useful life. Using the straight-line method, what is the book value of the equipment at the end of the third full year of use? a. $22,120 b. $28,400 c. $31,520 d. $25,520 C. $31,520 Zebra Inc. bu...

Chapter 9 Property, Plant and Equipment and Intangibles Chapter Opening Critical Thinking Challenge Questions* You are asked by the CFO of YVR to evaluate the newest capital asset, the Airside Operations Building at YVR, and to break it into major components for depreciation purposes. Identify at least five major components and determine an expected life for each of those components. Components of the Airside Operations Building could include: 1. Building exterior walls 40 years 2. Roofi...

Comparing actual outcomes with budget outcomes, then following up, is an example of a ~~> Controlling activities Which of the following is typically a starting point for the budget process? ~~> a sales budget Tax accounting is generally most used by: ~~> Internal revenue service (IRS) Management accountant place more emphases on which of the following ~~> future activities Which of the following organization would be most likely to accept a process costing system? ~...

Distinguish between tangible and intangible assets -tangible assets have physical substance (examples: land, buildings, machinery, fixtures and equipment) depreciate all tangible assets except land -intangible assets have no physical substance (examples: trademarks, patents, copyrights) provide the owner with specific rights and privileges account for the purchase and sale of long-lived assets What costs to capitalize - include all costs necessary to acquire an asset and prepare it for its inte...

Question 1 Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $7 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018. Any earned but unpaid wages will be paid during the first quarter of 2019. Using only the information provided, which of the following statements is most accurate? • Liabilities increased ...

Internal control is the organizational plan and all the related measures designed to accomplish which of the​ following? ​(check all that​ apply) A. Ensure​ accurate, reliable accounting records B. Promote operational efficiency C. Safeguard assets D. Encourage employees to follow company policies A. Ensure​ accurate, reliable accounting records B. Promote operational efficiency C. Safeguard assets D. Encourage employees to follow company policies Which of the following are ...

Matching Principle - CORRECT ANSWER The revenues and the expected incurred to generate those revenues must be reported together; a fundamental component of accrual-based accounting. Historical Cost Principle - CORRECT ANSWER Items that appear on the financial statement are listed at the cost when purchased. Current Assets - CORRECT ANSWER Cash or assets that will be converted into cash within the next year. Gross Fixed Assets - CORRECT ANSWER Property, Pla...

ACCO 310 - financial reporting I MULTIPLE CHOICE—Conceptual final exam actual practice verified 2024 questions and answers Concordia University 1. The essential characteristic(s) of accounting is (are) a. communication of financial information to interested persons. b. communication of financial information about economic entities. c. identification, measurement, and communication of financial information. d. all of these. 2. Financial accounting is concerned with the process that cul...