Exam 15: Overhead Application: Variable and Absorbtion Costing

are gross income ownership claims from delivering goods or services.

Unexpired costs are expenses.

Accounting information only helps assess past financial performance.

Identify which one or more of the following equations is not correct.

are gross decreases in ownership claims from delivering goods or services.

is (are) economic resources that are expected to benefit future activities.

Recognizes the impact of transactions on the financial statements in the periods when revenues and expenses occur instead of when cash is received or disbursed

Any asset that ordinarily becomes an expense in future periods

For a corporation, the excess of the assets over the liabilities is called:

Assume that Pacer Company's paid- in capital at the beginning of the period was $475,000. Pacer Company's total revenues and total expenses were $870,000 and $550,000, respectively. A dividend of $70,000 was declared and paid to shareholders. Pacer Company's net income is:

An approach that implicitly underlies the decisions about the design of accounting systems, that the potential benefits should exceed the additional costs

Rent paid in advance would be regarded as a prepaid expense by the renter and as unearned revenue by the building owner.

Dividends paid are considered an expense on the income statement.

FASB has the ultimate responsibility for specifying GAAP for United States companies.

Assets and owners' equity are presented on the right side of the balance sheet.

Nonprofit organizations do not use balance sheets.

When an asset is depreciated, owners' equity decreases.

Each item in a financial statement

Cash collected from customers before goods are delivered will:

An examination or in- depth inspection of a firm's financial statement and records