the ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as ()
for accounting purposes, the business entity should be considered separate from its owners if the entity is ()
the two most common specialized fields of accounting in practice are ()
the interest rate specified in the bond indenture is called the ()
the excess of issue price over par of common stock is termed a(n) ()
debts owed by a business are referred to as ()
a characteristic of a fixed asset is that it is ()
sinking fund cash would be classified on the balance sheet as ()
the income statement is prepared from ()
financial statements in which financial data for two or more companies are combined as a single entity are called ()
the interest rate specified in the bond indenture is called the ()
the excess of issue price over par of common stock is termed a(n) ()
financial reports are used by ()
the financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) ()
the following are examples of external users of accounting information except:()
the matching concept ()
using accrual accounting, expenses are recorded and reported only ()
when the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are ()
under the equity method, a stock purchase is recorded at its original cost and is not adjusted to fair market value each accounting period.()
investments in stocks that are expected to be held for the long term are listed in the stockholders’ equity section of the balance sheet.()
for strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments ided among different employees.()
journalizing is the process of entering amounts in the ledger.()
for a current liability to exist, the following two tests must be met. the liability must be due usually within a year and must be paid out of current assets.()
an example of an external user of accounting information is the government.()
the declining-balance method is an accelerated depreciation method.()
revenue is earned only when money is received.()
capital expenditures are costs that are charged to stockholders' equity accounts.()
when the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium.()
when common stock is issued in exchange for land, the land should be recorded in the accounts at the par amount of the stock issued.()
allowance for doubtful accounts is a liability account.()
a balance sheet is a list of the assets, liabilities, and owner's equity of a business for a period of time.()
the balance of the allowance for doubtful accounts is added to accounts receivable on the balance sheet.()
bondholders claims on the assets of the corporation rank ahead of stockholders.()
the units of production depreciation method matches expenses against revenue the best.()
the declaration of a stock idend decreases a corporation's stockholders' equity and increases its liabilities.()
the order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.()
when a stock idend is declared, it becomes a liability.()
sales discounts is a revenue account with a credit balance.()
a corporation is a business that is legally separate and distinct from its owners.()
investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet.()
a large retained earnings account means that there is cash available to pay idends.()
the double-entry accounting system records each transaction twice.()
if the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.()
under the accrual basis for the accounting period concept, revenues are reported in the income statement in the period in which they are earned.()
the accounting equation can be expressed as assets - liabilities = owner's equity.()
overall objective of financial reporting is to provide financial information useful to internal users in making economic decisions.()
dividends in arrears are liabilities of the corporation.()
income is recognized when an increase in future benefits related to an increase in an asset of a decrease of a liability has arisen that can be measured reliably.()
the excess of issue price over par of common stock is termed a(n) ()
debts owed by a business are referred to as ()
a characteristic of a fixed asset is that it is ()
sinking fund cash would be classified on the balance sheet as ()
the income statement is prepared from ()
financial statements in which financial data for two or more companies are combined as a single entity are called ()
the interest rate specified in the bond indenture is called the ()
the excess of issue price over par of common stock is termed a(n) ()
financial reports are used by ()
the financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) ()
the following are examples of external users of accounting information except:()
the matching concept ()
using accrual accounting, expenses are recorded and reported only ()
when the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are ()
under the equity method, a stock purchase is recorded at its original cost and is not adjusted to fair market value each accounting period.()
investments in stocks that are expected to be held for the long term are listed in the stockholders’ equity section of the balance sheet.()
for strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments ided among different employees.()
journalizing is the process of entering amounts in the ledger.()
for a current liability to exist, the following two tests must be met. the liability must be due usually within a year and must be paid out of current assets.()
an example of an external user of accounting information is the government.()
the declining-balance method is an accelerated depreciation method.()
revenue is earned only when money is received.()
capital expenditures are costs that are charged to stockholders' equity accounts.()
when the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium.()
when common stock is issued in exchange for land, the land should be recorded in the accounts at the par amount of the stock issued.()
allowance for doubtful accounts is a liability account.()
a balance sheet is a list of the assets, liabilities, and owner's equity of a business for a period of time.()
the balance of the allowance for doubtful accounts is added to accounts receivable on the balance sheet.()
bondholders claims on the assets of the corporation rank ahead of stockholders.()
the units of production depreciation method matches expenses against revenue the best.()
the declaration of a stock idend decreases a corporation's stockholders' equity and increases its liabilities.()
the order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.()
when a stock idend is declared, it becomes a liability.()
sales discounts is a revenue account with a credit balance.()
a corporation is a business that is legally separate and distinct from its owners.()
investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet.()
a large retained earnings account means that there is cash available to pay idends.()
the double-entry accounting system records each transaction twice.()
if the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.()
under the accrual basis for the accounting period concept, revenues are reported in the income statement in the period in which they are earned.()
the accounting equation can be expressed as assets - liabilities = owner's equity.()
overall objective of financial reporting is to provide financial information useful to internal users in making economic decisions.()
dividends in arrears are liabilities of the corporation.()