Name: Stephanie Taylor
2016, Exam 2 Re-work Date: 04/11/2016
_B_ 1.On October 1, Sam's Painting Service borrows $100,000 from National Bank on a 3month, $100,000, 4% note. The entry by Sam's Painting Service to record payment of
Plant assets are resources that have physical substance (a definite size and shape), are used in the operations of a
business, and are not intended for sale to customers. They are called various namesproperty, plant, and
equipment; plant and equipment; an
A series of equal cash flows at fixed intervals.
A form of an interest-bearing note used by corporations to borrow on a
The contract between a corporation issuing bonds and the bondholders.
Cash, current investments, and accounts receivable divided by current
liabilities; measures the availability of liquid current assets to pay current
Aggressive accounting practices
Practices that result in reporting higher inc
Annual dividend entitlement on preferred stock
Annual dividend entitlement
Amount of dividends that must be paid to preferred stockholders before any
dividend can be paid to common stockholders
Treasury stock shares are usually accounted for.
A depreciation method that produces higher depreciation expense in the
early years than the straight-line approach.
Additions and improvements
Costs incurred to increase the operating efficiency, productive capacity, or
T - Account
A device or convention for organizing and accumulating the accounting of
entries of transactions that affect and individual account
Income Statement 'articulates' with the Balance Sheet
by Retained Earnings
Retained Earnings (beginning) + Net
Is the NET CASH EQUIVALENT amount paid or to be paid for the asset
Additions and Improvements
Are CAPITAL EXPENDITURES which are INFREQUENT expenditures that
increase an asset's economic usefulness in the future
Name: _Stephanie Taylor_
1.Which of the following is an asset?
2.Which of the following is not a liability?
Formulas for Ratio Analysis
o Accounts receivable turnover = Net credit sales Average net accounts receivable
o Asset turnover = Net sales Average total assets
o Average collection period = 365 days Accounts receivable turnover
o Cash debt coverage = Net