What is the difference between the flow of costs and the physical flow of goods?

What is the difference between the flow of costs and the physical flow of goods? Flow of costs refers to the assumption that is made for the purpose...

In an inflationary period, which inventory cost flow method will produce the largest amount of total assets on the balance sheet? Explain.

In an inflationary period, which inventory cost flow method will produce the largest amount of total assets on the balance sheet? Explain. In an inflationary...

In an inflationary period, which inventory cost flow method will produce the highest net income? Explain.

In an inflationary period, which inventory cost flow method will produce the highest net income? Explain. In an inflationary period, i.e., a period...

What are some advantages and disadvantages of using the FIFO method of inventory valuation?

What are some advantages and disadvantages of using the FIFO method of inventory valuation? FIFO allocates the cost of the first units purchased to...

What are some advantages and disadvantages of the specific identification method of accounting for inventory?

What are some advantages and disadvantages of the specific identification method of accounting for inventory? One advantage of the specific identification...

What is the effect on the accounting equation of recognizing uncollectable accounts expense?

What is the effect on the accounting equation of recognizing uncollectable accounts expense? Recognizing uncollectible accounts expense reduces accounts...

What is the net realizable value of receivables?

What is the net realizable value of receivables? The net realizable value is the amount expected to be collected from accounts receivable. It is the...

What is the difference between accounts receivable and notes receivable?

What is the difference between accounts receivable and notes receivable? Accounts receivable are the expected future receipts that arise when a company...

The language of business

The language of business Accounting provides information that is useful in making decisions by all participants in the market for resource goods and...

What type of income or profit does an investor expect to receive in exchange for providing financial resources? What time of income does a creditor expect from providing financial resources to an organization or business?

What type of income or profit does an investor expect to receive in exchange for providing financial resources? What time of income does a creditor...

Describe a non-for-profit or nonprofit enterprise. What is the motivation for this type of entity?

Describe a non-for-profit or nonprofit enterprise. What is the motivation for this type of entity? Not-for-profit or nonprofit entities provide goods...

Distinguish between elements of financial statements and accounts.

Distinguish between elements of financial statements and accounts. Items reported on the financial statements are organized into classes or categories...

What role do assets play in business profitability?

What role do assets play in business profitability? Assets, the economic resources of a business, are used to produce earning...

To whom do the assets of a business belong?

To whom do the assets of a business belong? The assets of a business belong to that business entity and there may be claims on the assets. Claims...

Describe the differences between creditors and investors.

Describe the differences between creditors and investors. Creditors are individuals and/or institutions that have provided goods or services to the...

Name the accounting term used to describe a business's obligations to creditors.

Name the accounting term used to describe a business's obligations to creditors. The term "liabilities" is used to describe creditors' claims on the...

What is the accounting equation? Describe each of its three components.

What is the accounting equation? Describe each of its three components. The accounting equation is: ASSETS - LIABILITIES = STOCKHOLDERS' EQUITY or ASSETS...

Who ultimately bears the risk and collects the rewards associated with operating a business?

Who ultimately bears the risk and collects the rewards associated with operating a business? The owners ultimately bear the risk and collect the...

What does a double-entry bookkeeping system mean?

What does a double-entry bookkeeping system mean? A double-entry bookkeeping system is one in which every transaction affects at least two accounts....

How does acquiring capital from owners affect the accounting equation?

How does acquiring capital from owners affect the accounting equation? Capital is acquired from owners by issuing stock to them. When stock is issued,...

What is the difference between assets that are acquired by issuing common stock and those that are acquired by using retained earnings?

What is the difference between assets that are acquired by issuing common stock and those that are acquired by using retained earnings? Assets that...

How does earnings revenue affect the accounting equation?

How does earnings revenue affect the accounting equation? Revenue increases the asset side of the accounting equation and also increases the retained...

What are the three primary sources of assets?

What are the three primary sources of assets? The three primary sources of assets are (1) investments by owners (issue of stock), (2) borrowing...

What is the source of retained earnings?

What is the source of retained earnings? Retained earnings are a result of a business retaining its earned assets, rather than distributing those...

How does distributing assets (paying dividends) to owners affect the accounting equation?

How does distributing assets (paying dividends) to owners affect the accounting equation? Distributions to owners, called dividends, decrease the...

What are the similarities and differences between the dividends and the expenses?

What are the similarities and differences between the dividends and the expenses? Dividends and expenses are similar in that they both decrease assets...

What four general-purpose financial statements do business enterprises use?

What four general-purpose financial statements do business enterprises use? 1) Income Statement - measures the difference between the asset increases...

Which of the general-purpose financial statements provides information about the enterprise at a specific designated date?

Which of the general-purpose financial statements provides information about the enterprise at a specific designated date? The balance sheet provides...

What causes a net loss?

What causes a net loss? A net loss occurs when expenses exceed revenues in a given accounting perio...

How are asset accounts usually arranged in the balance sheet?

How are asset accounts usually arranged in the balance sheet? Asset accounts are arranged on the balance sheet in accordance with their level of liquidity...

How do temporary accounts differ from permanent accounts? Name three temporary accounts. Is retained earnings a temporary or a permanent account?

How do temporary accounts differ from permanent accounts? Name three temporary accounts. Is retained earnings a temporary or a permanent account? Temporary...

What is the historical cost concept and how does it relate to verifiability?

What is the historical cost concept and how does it relate to verifiability? The historical cost concept requires that most assets be reported at...