Exam 2: Concepts and Elements Underlying Accounting

Barrington Industries recently sold 1,000 shares of common stock with a par value of $0.10 per share and a market price of $15.00 per share. -As a result of this sale, Barrington's total stockholders' equity should increase by

In March 2010, a company salesperson sold some inventory and would receive a commission on those sales in April. The commission should be recognized as

In the U.S., the income generated by

On September 25, 2010, Fox Department Store purchased five bottles of perfume from Bloomington Manufacturers for $39 each. On October 1, 2010, Janet Wyatt purchased two bottles of the perfume from Fox for $65 each. For this sale, Fox's gross profit and gross profit percentage were

Elijah Corp. has the following accounts in its chart of accounts. a. Prepaid Insurance b. Accounts Payable c. Common Stock d. Land e. Patent f. Cash g. Unearned Rent (to be earned in two months) h. Supplies i. Inventory j. Note Payable (due in three years) k. Accounts Receivable l. Salaries Expense m. Retained Earnings n. Rent Revenue o. Land (held for future construction) p. Machinery q. Salaries Payable r. Paid-In Capital in Excess of Par Required: Classify each of the accounts as one of the following: CA = Current asset LTI = Long-term investment PPE = Property, plant & equipment IA = Intangible asset CL = Current liability LTL = Long-term liability SE = Stockholders' equity NA = None of the classifications are applicable

Many companies that have valuable patents do not show a value for those patents in the asset section of the balance sheet.

The concept indicating that specific items of accounting information are important is

An accounting record that contains all the transactional information for the individual accounts for a business is a

Before being recorded in a business's accounting records, revenue should be