Exam 2: Analyzing Transaction and Their Effect on Financial Statement

Which of the following enhancing characteristics is achieved if a third party,with sufficient understanding,would arrive at a similar result to that used by the company?

Which of the following are examples of financing activities?

On March 31,2020 Exacto Company paid $5,200 for a 1-year insurance policy.To record this transaction Exacto Company should

All of the following are examples of enhancing qualitative characteristics except

A piece of equipment was recently purchased for $10,600 on April 1.It is estimated that it will last for 10 years and have a residual value of $600.The depreciation expense to be recognized in the year of acquisition,assuming a December year end,would be

Oleander Company paid $22,000 for goods it had purchased last month on account.What is the effect of the payment?

The following costs are initially expressed as assets but are then reclassified as expenses when they are used up,except for the following:

If dividends are declared and paid in the same accounting period,what is the net effect on the accounting equation?

Relevance,faithful representation and cost constraint are examples of the fundamental qualitative characteristics.

When $10,000 of inventory is purchased with a three-month note payable bearing 2% interest,the inventory has a total cost of

Cost of goods sold should be matched up with the revenue generated on each year's Statement of Income because of the

Under the accrual basis of accounting,expenses are

Use the following information for questions below During a recent week, McMunn Legal Services received $25,000 cash from clients for services performed with a total value of $75,000. The balance is to be received within 30 days. -The effect of this transaction in the accounting records would be

Use the following information for questions below During a recent week, McMunn Legal Services received $25,000 cash from clients for services performed with a total value of $75,000. The balance is to be received within 30 days. -The effect on the Statement of Financial Position equation for this transaction would be

The receipt of cash is a revenue recognition criteria for

The Classified Statement of Financial Position distinguishes between current and non-current assets and liabilities.

Information is considered to be material if it would impact the decisions of a financial statement user.

Marlin Enterprises signed a lease for office space during their first month of business.At that time they paid a total of $12,000 for first and last months' rent.At the end of the first month,the effect on the financial statements would be

The template method can only be used by large companies.

Public companies are prohibited from being cross listed.