Accounting 200 Exam 3 Terms
Accounting Exam 3
The portion of the asset’s cost that will be used up during its life. It is calculated as asset cost minus residual value and allocated to depreciation expense throughout the asset’s life. Allocates the cost of an asset oer its useful life based on a multiple of (often two times) the straight-line rate. Net income / Average total assets Widely used indicator that focuses on the dimension of a firm’s financial health.
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A depreciation method in which cost (minus residual value) is divided by the estimated units of lifetime output. The unit depreciation cost is multiplied by the actual units of output each year to compute the annual depreciation expense.
Accounting 215 Exam 3 Terms
The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset’s useful life. The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions. The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.
Accounting 200 Exam 3 Terms/equations
Also called coupon rate or contract rate. Previously unrecorded expenses that need to be adjusted at the end of the accounting period to reflect the amount incurred and its related liability account. Expenditures for the normal operating upkeep of long-lived assets, recorded as expenses. For accounting purposes, the excess of the purchase price of a business over the market value of the business’s asses and liabilities. Credit losses are considered to be an operating expense of a business and consequently debited to this account.
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Short-term obligations that will be paid in cash (or fulfilled with other current assets) within 12 months or the next operating cycle, whichever is longer. Allocates the depreciable cost of an asset over its useful life based on its output during the period in relation to its total estimated Accounting Exam 3 Terms Flashcards output. Allocates the depreciable cost of an asset in equal periodic amounts over its useful life based on its output during the period in relation to its total estimated output. Net sales / Average total assets Another ratio that evaluates a company’s effective use of its assets.
- A depreciation method in which cost (minus residual value) is divided by the estimated units of lifetime output.
- Estimated amount to be recovered, less disposal costs, at the end of the company’s estimated useful life of an asset.
- A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.
- A method of depreciation that provides Which type of account is a bank overdraft account for equal periodic depreciation expense over the estimated life of a fixed asset.
What is the correct journal entry for Percentage of Credit Sales Method of Estimating Bad Debt Expense based on the example below? Credit sales for https://accountingcoaching.online/bookkeeping/how-revenue-affects-the-balance-sheet/ the accounting period are $120,000. The company estimates that .75% will be uncollectible and records an Adusting Journal Entry (AJE) for the amount.
The estimated value of a fixed asset at the end of its useful life. Long-term assets that are useful Accounting Exam 3 Terms Flashcards in the operations of a business, are not held for sale, and are without physical qualities.
a company starts the year with a beginning inventor of 300 units at $5 dollar per uni. the company purchases 500 units at 4$ each in February and 200 units at $6 each in october.
The process of comparing the bank’s account balance with the company’s balance, and explaining the differences to make them agree. A method of accounting for certain investments that requires that they be adjusted to their fair value at the end of each period. The value today Accounting Exam 3 Terms Flashcards of an amount to be received at some date in the future after taking into account current interest rates. A method of amortizing bond discount or bond premium that results in periodic interest expense equal to a constant percentage of the carrying value of the bonds.
Looks at market confidence. Reports assets and claims to assets at a specific point in time. Includes Assets, liabilities, and stockholders equity. The systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for. The difference between the cost of an asset and the accumulated depreciation for that asset is called. lock security company reported a beginning inventory of $1500. during the year, the company recorded inventory purchases of 4500 and cost of goods sold of 5000. What was the amount of its ending inventory.
If stock is cumulative, then always take out dividends even if they are not declared. If preferred stock is non-cumulative, then only take out dividends if declared.