test review - 7 16000 17250 1250 196250 8 16000 17250 1250...

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Review for test 2 going off of the outline FINAL 730 AM SAME CLASSROOM Chapter 7 Will stick to the basics when it comes to bad debt expense and when it comes to allowing it. Allowance for UA is a contra asset account that reduces receivables *Know the accounts receivable turn over ratio* Chapter 8 Know depreciation and depletion Depreciation Straight Line Units-of-production Declining Depletion Natural resources Recognize intangible assets Goodwill Patents Return on assets, assets turn over Chapter 9 EX: 200,000 8% 10 years sells for $187,500 12500 discount 160000 interest paid each year The interest expense will be more. 1250 ammortization 14750 Paid EXP Ammt. Disc 187500 1 16000 17250 1250 188750 *using straight line all 3 things sta 2 16000 17250 1250 190000 only the maturity column increase 3 16000 17250 1250 191250 the bonds were sold at a discount 4 16000 17250 1250 192500 5 16000 17250 1250 193750 6 16000 17250 1250 195000
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Unformatted text preview: 7 16000 17250 1250 196250 8 16000 17250 1250 197500 9 16000 17250 1250 198750 10 16000 17250 1250 200000 The extra credit is figuring the sales price. The market rate would be given so we can figure out the discoun and then the sales price. Leverage is when you use debt to finance growth. Ratios: times interest earned, debt to equity (total debt/total equity) Bonds Chapter 10 Ratios: Return on equity (profit/total equity), Analyzing the stockholders equity, how much would go to each of the stockholders, net income, etc Chapter 11 Know if it is inflow, outflow, or operating, financing and investing. Multiple choice answers Question Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 1 B A A C D 2 C C A D A 3 C C B A C 4 B B B C D 5 C B B D C 6 D B A B C 7 A C A B B 8 D C B C B 9 C A B B A 10 A B B D B y constant es because t nt...
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This note was uploaded on 06/08/2008 for the course BA 213 taught by Professor Krislen-adams during the Spring '08 term at Linn Benton Community College.

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test review - 7 16000 17250 1250 196250 8 16000 17250 1250...

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