41. . The CEO of a business owns a residence in Flagstaff.

The company the

CEO works for owns a factory in Chandler. Which of these properties is
considered an asset(s) of the business? - The Chandler factory only

42. Using the aging-of-receivables method to estimate uncollectibles, Avidity

Corporation estimates that $3,550 of its accounts receivable will be
uncollectible. Prior to adjustment, the Allowance for Uncollectible
Accounts has a credit balance of $800. Bad debt expense to be reported
on the income statement is: - $2,750.

43. . If liabilities increase by $8,000 during a given period and stockholders'

equity decreases by $4,000 during the same period, assets must have -
increased by $12,000

44. . On July 25, Hamilton Bey Company's accountant prepared a check for
August's rent payment. Hamilton Bey Company mails the check on July
27 to the landlord. The landlord receives the check on July 31 and cashes
the check on August 2. When should Hamilton Bey Company record the
rent expense associated with this transaction? - August 31st

45. . Assume the beginning balance in the Retained Earnings account is zero.
If a debit balance of $5,000 exists in Retained Earnings after closing out
revenues and expenses at the end of the current period, it indicates: - the
company had a net loss of $5,000

46. The entry to record the payment of salaries to employees would include a:
- debit to Accounts Payable

47. Calside Company signed a 15-month, $50,000, 6% note on June 1, 2020.

The amount of interest to be accrued on December 31, 2020, is: - $1,750

48. . An expense incurred in 2020 is not paid until 2021. Using the accrual
basis of accounting, the expense should appear on - the 2020 income
statement

49. . The closing entry for the dividends account would include a debit to: -
Retained Earnings and a credit to Dividends

50. . On December 1, 2020, Debbie's Plantscape receives $2,400 in advance

for an agreement to care, in equal monthly efforts, for a client's office
plants during the months of December, January, and February. As of
December 31, 2020, Debbie's Plantscape would have: - recognized $800
revenue under accrual accounting, or $2,400 revenue under cash-
basis accounting.

51. . ABC Company had total sales for the period of $20,000 and total
expenses for the period of $7,000. ABC Company began the period with a
beginning cash balance of $10,000, received cash of $8,000 and ended
 the period with a cash balance of $6,000. Cash payments for the period: -
were $12,000.

52. Graham Company has a total accounts receivable balance of $175,000

and total allowance for uncolectible accounts of $22,000 just prior to
writing off a $2,500 accounts receivable. What is the net realizable value
before and after the write-off? - $153,000 $153,000

53. . All of the following are true statements about the Accumulated
Depreciation account EXCEPT that it: - is a contra asset account with a
normal debit balance.

54. Advantages of a corporation include - limited liability of the

stockholders.

55. . Revenues were $325,000, expenses were $175,000, and cash dividends
were $55,000. What was the net income and the change in retained
earnings for the period? - Net income was $150,000; the change in
retained earnings was $95,000.

56. 9. On October 1 of the current year, a company received $7500 for

services to be performed evenly over the next six months. If no adjusting
entry was made on December 31 of the current year: - net income
would be understated by $3,750.

57. Given the following transactions, what is the balance in the cash account?
1. The owner started the company by investing $9,800 cash. 2. The
company paid $3,000 for 9 months' rent in advance. 3. The company
acquired $2,400 in merchandise inventory with one-third of the purchase
on account - $5,200 debit balance

58. Describe the two primary functions of financial accounting. -

-To measure business activities of a company, and
-To communicate those measurements to external parties for
decision-making purposes.

59. Understand the business activities that financial accounting measures. -

Financing activities: transactions the company has with investors
and creditors.
Investing activities: transactions involving the purchase and sale
of resources that are expected to benefit the company for several years.
Operating activities: transactions that relate to the primary
operations of the company.

60. corporation - is a company that is legally separate from its owners.

The advantage of being legally separate is that the stockholders
have limited liability.

61. Revenues - are the amounts recognized when the company sells
products or provides services to customers.
62. Determine how financial accounting information is communicated through
financial statements. -
Financial statements are periodic reports published by the
company for the purpose of providing information to external users.
 §Primary financial statements.
 §Income statement.
 §Statement of stockholders' equity.
 §Balance sheet.
 §Statement of cash flows.

63. Income statement - reports companies revenues and expenses - the

income statement compares revenues and expenses for the current
period to assess the company's ability to earn a profit from running
its operation

64. statement of stockholders' equity - a financial statement that shows

changes in a corporation's ownership for a fiscal period
common stock-external
less dividends

65. Are dividends included in income statement? - NO

66. Balance sheet - Presents the financial position of the company on a

particular date

67. Statement of Cash flows - measures activities involving cash receipts

and cash payments over an interval of time

68. Borrow $10,000 from the local bank and sign a note promising to repay
the full amount of the debt in three years. - cash notes payable

69. Purchase supplies on account - supplies accounts payable

70. Provide soccer training to customers for cash, $4,300. - cash and
service revenue

71. Provide soccer training to customers on account, $2,000. - account

receivable and service revenue

72. Receive cash in advance for 12 soccer training sessions to be given in the
future, $600. -
cash
deferred revenue

73. The T-account - record of increases and decreases in a specific asset

liability equity revenue

74. A trial balance - is a list of all accounts and their balances at a

particular date, showing that total debits equal total credits
75. FOB (free on board) shipping point - ownership changes hands and
revenue is recognized when goods leave the shipping dock

76. FOB (free on board) destination - ownership changes hands and

revenue is recognized at the point of delivery to the customer

77. Under accrual-basis accounting - , we record revenues when we

provide goods and services to customers, and we record expenses
when costs are used in company operations.

78. Under cash-basis accounting, - we record revenues when we receive

cash, and we record expenses when we pay cash. Cash-basis
accounting is not allowed for financial reporting purposes for most
major companies.

79. Accrued expenses - occur when a company has used costs in the
current period, but the company hasn't yet paid cash for those costs.