ACC 210 ncsu exam 1 Questions and answers, 100% Accurate, VERIFIED.

ACC 210 ncsu exam 1 Questions and answers, 100% Accurate, VERIFIED. Asset - -something that has future economic benefit Asset examples - -cash, accounts receivable, inventory, prepaid insurance, equipment Liability - -a debt owed to others Liability examples - -accounts payable, unearned revenue, note payable Dividends - -money that a company has promised to give to its stockholders Equity - -Common stock, retained earnings, revenues Accounting equation - -assets= liabilities + stockholders equity Intangible asset - -derives its value from the rights and privileges it provides the owner. The statement of cash flows would disclose the payment of a dividend where? - -in the financing activities section. The relationship between current assets and current liabilities is important in evaluating a company's - -liquidity what is the current ratio? Current assets Current liabilities $ 21,000 $15,000 - -1.40:1 (assets/liabilities) Courtney Company purchased equipment for $1,800 cash. As a result of this event, - -total assets remain unchanged because: One asset (equipment) increases while another asset (cash) decreases (both by $1,800) James & Younger Corporation purchased a one-year insurance policy on March 1, 2016 for $42,000 and recorded it as a Prepaid Insurance. The insurance policy is in effect from March 2016 through February 2017. If the company neglects to make the proper year-end adjusting entry: - -net income and assets will be overstated by $35