TVM Practice Homework
‘ i - 5/ r4 500
Dusty would like to buy a new car in C} years. He currently has $ i W“ ”
around 5 ill/5.01” but would like to add a Turbo engine to increase the car’s performance. This would increase the
price of the cargs lgwlf‘lﬂl)
Chapter 5 review
1. When recording a credit sale, what account do we debit? Describe where this account is reported in
the financial statements.
Accounts Receivable; balance sheet, as an asset.
2. What is the difference between a trade receivable and a no
Chapter 2 Review Questions
1. Explain the difference between external transactions and internal transactions. If a company
purchases supplies from a local vendor, would this be classified as an external or internal transaction?
External transactions invol
Chapter 3 Review, Marisa Baham
1. Discuss the major principle that describes recording revenues.
Revenue Recognition Principle
2. Discuss the major principle that describes recording expenses.
3. Samantha is a first-year accounting stud
Chapter 4 Review
1. Define occupational fraud. Describe two common means of occupational fraud.
The use of ones occupation for personal enrichment through the deliberate misuse or misapplication
of the organizations resources or assets. Overstating assets
Appendix C questions
1. Define interest. Explain the difference between simple interest and compound interest.
The cost of borrowing money. Simple Interest is what you earn on the initial investment only.
Compound Interest is what you earn on the initial
We paid cash (or obligation to
pay) for the purchase of an asset
before we incurred the expense.
We received cash an
Chapter 7 Notes
The accounting definition of depreciation is the allocation of the cost of an asset to an expense over its service
life. This is different from the dictionary definition of depreciation of a decrease in value.
The following entry is made t
Bond Example to Help with HW9a - Questions 1 to 3
The Guided Example (accessed via the "View Hint" link) goes through the calculations
using a financial caclculator. This document provides instructions that show how to
use the Time Value of Money tables i
Armada) X ,025 2 00,000 mic/aw
SGA8 (Ch 9) 504/? 2025
On January 1, 2106, Clark Industries issues $1,600,000 of 5% bonds, due in 15 years, with interest
payable semiannually on June 30 and December 31 each Er. Determine if the bond will be issued
1. Explain what it means to say that an accounting class is not the same as a math class.
Accounting is the language of business and only involves basic math skills, such as addition, subtraction,
multiplication and division.
2. Identify some