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23 Cards in this Set
- Front
- Back
SALAVAGE value is not used in calculating ___________ using ________ method of depreciation.
BUT the asset cannot be depreciated below __________ |
DEPRECIATION EXPENSE
DOUBLE-DECLINING METHOD SALVAGE VALUE |
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The ROYALTIES should be recognized as revenue in the period ___________
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EARNED
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the Gain/Loss from the settlemtn of the lawsuit would be properly included in ________________
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INCOME FROM CONTINUING OPERATIONS
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For a LESSEE (me)
the last month's rent is capitalized as _________ and expensed the last month of the lease term. The refundable SECURITY DEPOSIT IS___________ |
PREPAID RENT
AN ASSET |
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The proceeds from a life insurance policy held by Corp. on the offecer LESS the ____________ should be reported by Corp as a GAIN REVENUE
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Carrying amount (CASH SURRENDER VALUE)
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Sales should be adjusted for the expected ___________ ONLYas an allowance __________ sales
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RETURNS
REDUCING |
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Under the cost method, dividends are recognized as Income when ___________
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RECEIVED
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Cash revenue =
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Cr sale + Cash sale - discounts + A/R decrease - A/R increase
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Depletion per unit =
Depletion in the C/Y = |
Capitalized cost / Total estimated units economically recoverable
Deplition per unit x units extracted in C/Y |
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DEFFERED GROSS PROFIT =
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Cash to be collected x Gross Profit Rate
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The cash surrender value of a whole-life insurance policy represents an amount that __________________________ = to
If the company is both the OWNER and BENEFICIARY of the policy, the cash surrender value is an ______________ to the Co. |
can be recovered if the policy is canceled.
ASSET = Anual premium less Expense |
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How to calc. INTEREST INCOME on the NO % N/P for $$$
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INTEREST INCOME= PV OF $$$ x Current Interest Rate
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Rate of Return on assets
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Net income / Average assets
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A COMPLETED-CONTRACT METHOD is method of accounting for lont-term contracts under which Income is recognized only in ______________
COSTS are recorded as ASSETS or LIAB |
THE YEAR OF COMPLITION
COST (BILLINGS) _______________________________ ASSET or (LIABILITY) |
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Under the Completed- contract method
The Profit is ________ The Loss is __________ on the F/S |
Not reported
RECOGNIZED IMMEDIATLY TOTAL COST (CONTRAC PRICE) _________________ GAIN / (LOSS) |
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COMPOSITE (dissimilar assets) and GROUP ( simmilar assets ) methods of depreciation are based on __________ type of Depr.
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S/L
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How to calc profit/loss on
PERCENTAGE-OF-COMPLITION METHOD? |
% COMPLETED = TOTAL COST/ ESTIMATED COSTS
X CONTRACT PRICE (CY COSTS) __________________ GROSS PROFIT if LOSS - the entire amount is recognized |
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Gross profit rate =
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(Sale - Cost) / Sale
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JE by DEBTOR on liquidation of debt though transfer of asset
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DR NOTE PAYABLE
DR LOSS on transfer ( FMV less CV of asset) --------- CR ASSET @ CV _____ CR Extraordinary gain - restructure of debt (N/P less FMV of asset) |
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Transportation to consingnee is ( included/excluded from)
___________ |
included in COGS
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% of completion Yr 3 income =
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(Total cost incurred to date / total estimated cost) x GP
less Income recognized in prior years |
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Under the cost method, dividends are recorded as income (revenue) when the dividends is
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DECLARED
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The liqudating dividend is recorded as ________________
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return OF INVESTMENT
it is NOT income |