CHAPTER 8: Valuation of Inventories: A Cost-Basis Approach
Inventory per physical count
Goods in transit to customer, f.o.b. destination
Goods in transit from vendor, f.o.b. seller
Inventory to be reported on balance sheet
CHAPTER 6: COST VOLUME PROFIT
Activity index The activity that causes changes in the behavior of costs.
Break-even point The level of activity at which total revenues equal total costs.
Contribution margin (CM) The amount of revenue remaining after deduct
CHAPTER 3: ACCOUNTING INFORMATION SYSTEM
Account (p. 111) An individual accounting record of increases and decreases in
specific asset, liability, stockholders equity, revenue or expense items.
Accounting information system (p. 102) The system of collecti
CHAPTER 2: A FURTHER LOOK AT FINANCIAL STATEMENTS
Accrual-basis accounting (p. 66) Transactions that change a companys financial statements are recorded
in the periods in which the events occur.
Classified balance sheet (p. 48) A balance sheet that contai
CHAPTER 1: INTRODUCTION TO FINANCIAL STATEMENTS
Accounting (p. 5) The information system that identifies, records, and communicates the
economic events of an organization to interested users.
Annual report (p. 19) A report prepared by corporate management
CHAPTER 5: MANAGERIAL ACCOUNTING
Activity-based costing (ABC): A method of allocating overhead based on each products use of activities in
making the product.
Balanced scorecard A performance-measurement approach that uses both financial and nonfinancial
CHAPTER 4: FRAUD, INTERNAL CONTROL AND CASH
Bank reconciliation (p. 352) The process of comparing the banks account
balance with the companys balance, and explaining the differences to make them
Bank statement (p. 352) A statement received monthly
Chapter 7 Homework Solutions
Cash balance of $925,000. Only the checking account balance should be reported as cash.
The certificates of deposit of $1,400,000 should be reported as a temporary investment,
the cash advance to subsidiary of $980,000 s
Chapter 4 Homework Solutions
P. BRIDE COMPANY
For the Year Ended December 31, 2014
(In thousands, except earnings per share)
Cost of goods sold.
Chapter 2 Homework
False General-purpose financial reports helps users who lack the ability to
demand all the financial information they need from an entity and therefore must
rely, at least partly, on the information in financial reports
FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
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