ACG 3173 Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Book Value ✔Correct Answer-the difference between the cost of a depreciable asset and its
related accumulated depreciation
book value formula ✔Correct Answer-cost - accumulated depreciation
short-term (current) liabilities ✔Correct Answer-debts the company expects to pay within one
year
balance sheet ✔Correct Answer-A summary of a business's assets, liabilities, and owner's
equity.
Ending Bad Debt Allowance formula ✔Correct Answer-Beginning Bad Debt Allowance + Bad
Debt Expense - Write-off amounts
True or False. The bad debt expense account represents the amount the company expects not
to collect from customers who bought on account ✔Correct Answer-true
return on assets ✔Correct Answer-net income/average total assets
net realizable value of accounts receivable formula ✔Correct Answer-Accounts Receivable -
Allowance for Doubtful Accounts
net realizable value of accounts receivable ✔Correct Answer-represents the amount of
receivables a company estimates it will actually collect
Inventory Turnover ✔Correct Answer-COGS / avg inventory
interest income account ✔Correct Answer-interest the company expects to collect and/or
already has collected
statement of stockholders' equity ✔Correct Answer-a financial statement that summarizes
the changes in stockholders' equity over an interval of time
depletion ✔Correct Answer-similar depreciation used to spread out the cost of a natural
resource (gas, coal, timber, etc.) over its useful life
money market mutual fund ✔Correct Answer-mutual funds invested into treasury securities,
commercial paper, and bank certificate of deposits
, outstanding stock ✔Correct Answer-The number of shares held by investors; excludes
treasury shares
A bank Certificate of Deposit is a: ✔Correct Answer-promissory note issued by a bank
depreciation ✔Correct Answer-the cost of the asset allocated over its useful life
Accounting Entity Concept ✔Correct Answer-all economic activities can be accounted for
T or F. A company with a debt ratio of 0.55 is riskier than a company with a debt ratio of 0.12
✔Correct Answer-True. The company with the greater debt ratio is financed by more debt,
increasing the risk of the business
dividends ✔Correct Answer-a distribution of profits to stockholders
T or F: a higher ROE is better ✔Correct Answer-True, a higher ROE means the company is
receiving a greater return on its equity
T or F: managerial accounting does not need to follow GAAP standards ✔Correct Answer-true
T or F: Gross profit is synonymous to EBT ✔Correct Answer-false
Matching Principle ✔Correct Answer-all expenses must be matched in the same accounting
period as the revenues they helped to earn
what changes on the balance sheet due to accrued interest? ✔Correct Answer-assets increase
due to an increase in interest receivable and equity increases due to an increase in interest
income
Adverse Opinion ✔Correct Answer-the financial information is misrepresented and does not
accurately reflect the companys financial performance
unqualified opinion ✔Correct Answer-The statements are presented fairly in conformity with
GAAP
Amortization ✔Correct Answer-used to spread out the cost of an intangible asset over its
useful life
other comprehensive income ✔Correct Answer-certain gains and losses that are excluded
from the income statement
Debt to Equity Ratio ✔Correct Answer-Total Debt/Total Equity
T or F: suppliers use accounting information ✔Correct Answer-true
Answers |Latest Version |Already Graded A+
Book Value ✔Correct Answer-the difference between the cost of a depreciable asset and its
related accumulated depreciation
book value formula ✔Correct Answer-cost - accumulated depreciation
short-term (current) liabilities ✔Correct Answer-debts the company expects to pay within one
year
balance sheet ✔Correct Answer-A summary of a business's assets, liabilities, and owner's
equity.
Ending Bad Debt Allowance formula ✔Correct Answer-Beginning Bad Debt Allowance + Bad
Debt Expense - Write-off amounts
True or False. The bad debt expense account represents the amount the company expects not
to collect from customers who bought on account ✔Correct Answer-true
return on assets ✔Correct Answer-net income/average total assets
net realizable value of accounts receivable formula ✔Correct Answer-Accounts Receivable -
Allowance for Doubtful Accounts
net realizable value of accounts receivable ✔Correct Answer-represents the amount of
receivables a company estimates it will actually collect
Inventory Turnover ✔Correct Answer-COGS / avg inventory
interest income account ✔Correct Answer-interest the company expects to collect and/or
already has collected
statement of stockholders' equity ✔Correct Answer-a financial statement that summarizes
the changes in stockholders' equity over an interval of time
depletion ✔Correct Answer-similar depreciation used to spread out the cost of a natural
resource (gas, coal, timber, etc.) over its useful life
money market mutual fund ✔Correct Answer-mutual funds invested into treasury securities,
commercial paper, and bank certificate of deposits
, outstanding stock ✔Correct Answer-The number of shares held by investors; excludes
treasury shares
A bank Certificate of Deposit is a: ✔Correct Answer-promissory note issued by a bank
depreciation ✔Correct Answer-the cost of the asset allocated over its useful life
Accounting Entity Concept ✔Correct Answer-all economic activities can be accounted for
T or F. A company with a debt ratio of 0.55 is riskier than a company with a debt ratio of 0.12
✔Correct Answer-True. The company with the greater debt ratio is financed by more debt,
increasing the risk of the business
dividends ✔Correct Answer-a distribution of profits to stockholders
T or F: a higher ROE is better ✔Correct Answer-True, a higher ROE means the company is
receiving a greater return on its equity
T or F: managerial accounting does not need to follow GAAP standards ✔Correct Answer-true
T or F: Gross profit is synonymous to EBT ✔Correct Answer-false
Matching Principle ✔Correct Answer-all expenses must be matched in the same accounting
period as the revenues they helped to earn
what changes on the balance sheet due to accrued interest? ✔Correct Answer-assets increase
due to an increase in interest receivable and equity increases due to an increase in interest
income
Adverse Opinion ✔Correct Answer-the financial information is misrepresented and does not
accurately reflect the companys financial performance
unqualified opinion ✔Correct Answer-The statements are presented fairly in conformity with
GAAP
Amortization ✔Correct Answer-used to spread out the cost of an intangible asset over its
useful life
other comprehensive income ✔Correct Answer-certain gains and losses that are excluded
from the income statement
Debt to Equity Ratio ✔Correct Answer-Total Debt/Total Equity
T or F: suppliers use accounting information ✔Correct Answer-true
