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Acc 201 Chapter 2 final exam

Acc 201 Chapter 2 final exam - Assumptions Understand what...

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Chapter 2 : Balance Sheet Know what’s in it Assets: Current: Cash, Marketable Securities, Accounts/Notes/Interest (Receivables), Inventory, (Prepaid) Insurance/Rent, Supplies. Long Term Investments: LT Notes Receivables, Securities Stocks, LT Bound Invest, Land, Plant, and Equipment. Intangible: Good will, Patent, Trademark, Copyrights, Franchise, Leasehold Improvements. Liabilities: Current: Accounts/Wages/Interest/ST Notes/Current Maturities/Income Tax/Rent/Deviance (Payable), Unearned Rent. Long Term: Notes/Bonds/Mortgage/Warranty/Pension/Capital Lease/Deferred Income Taxes (Payable). Stockholders Equity: Common Stock, Preferred stock, paid in Capital, Retained Earnings.
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Unformatted text preview: Assumptions: Understand what they assume, applications Separate entity: Business transactions are separate from the transactions of the owners. Unit of measurement: Accounting information should be measured and reported in the national monetary unit. Going concern: Businesses are assumed to continue to operate into the foreseeable future. Historical Cost Principle : Record assets at the historical cash-equivalent cost on the date of the transaction. Financial leverage ratio: Measures relationship b/t Financial leverage ratio = Average Total Assets / Average Stockholders Equity Chapter 3 : Income Statement...
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