OSU Acctmis 2200 Exam 2 Questions and Answers | Guaranteed 100% Success

OSU Acctmis 2200 Exam 2 Questions and Answers | Guaranteed 100% Success Operating Activities - answer-Cash effect of: 1 Revenues 2 Expenses 3 Interest Expense AND DIVIDENDS RECEIVED (revenue) Investing Activities - answer-Cash flows for: 1 P-P-E 2 Intangibles 3 Buying/ selling stock (investments) Financing Activities - answer-Received from or paid to stockholders/ creditors Inflows: Notes payable 1 received from loans 2 received from sale of common stock Outflows: 1 PAID for dividends 2 cash paid as the principle repayment on loans (not with interest) How to calculate expenses payable - answer-Beginning Balance + x expense - cash paid for x = End Balance Direct Method - answer-List each specific cash flowIndirect method - answer-Net income + Depreciation Expense + Losses - Gains + Decreases in assets + Decreases in liabilities - Increases in Assets - Increases in Liabilities = Net Income with Cash Accounting Sales Discount : 2/10, n/30 - answer-2% discount on all purchases made within 10 days, after that no discount and balance is due in 30 days Net Realizable Value (NRV) = - answer-= Accounts Receivable - Allowance for doubtful accounts Average Collection Period = - answer-365/ Accounts Receivable Turnover Accounts Receivable turnover = - answer-Net sales revenue/ Average Accounts receivable What does the aging method yield - answer-End balance for allowance for doubtful accounts (not bad debt expense) Accounts Receivable t-account = - answer-Beginning balance + Sales Revenue - Cash received from customers = end balance Total cash received from customers in cash flow = - answer-= Cash collected from customers in accounts receivable + unearned revenue