MGT 8803 - FINANCIAL ACCOUNTING EXAM 1 STUDY SET UPDATED QUESTIONS WITH COMPLETE ANSWERS!!

MGT 8803 - FINANCIAL ACCOUNTING
EXAM 1 STUDY SET

Cash - CORRECT ANSWER-Type: Asset
Statement: Balance Sheet
Current Account

Deferred Revenue - CORRECT ANSWER-cash received in advance from a customer
for products or services to be provided in the future.
Type: Liability
Statement: Balance Sheet
Current Account

Treasury Stock - CORRECT ANSWER-A corporation's own stock that it has reacquired
Type: Contra-Equity
Statement: Balance Sheet

Cost of Goods Sold - CORRECT ANSWER-the total cost of merchandise sold during
the period
Type: Expense
Statement: Income Statement

Interest Expense - CORRECT ANSWER-the interest accrued on money borrowed
Type: Expense
Statement: Income Statement

Sales - CORRECT ANSWER-The total amount charged customers for merchandise
sold, including cash sales and sales on account.
Type: Revenue
Statement: Income Statement

Sales Discounts - CORRECT ANSWER-reduction in the amount of cash received from
a customer for early payment
Type: Contra-Revenue
Statement: Income Statement

Sales Return - CORRECT ANSWER-credit allowed a customer for the sales price of
returned merchandise, resulting in a decrease in the vendor's accounts receivable
Type: Contra-Revenue
Statement: Income Statement

, Discounts on Bonds Payable - CORRECT ANSWER-contra liability account used to
record the amount of discount on a bond issue
Type: Contra-Liability
Statement: Balance Sheet

Iventory - CORRECT ANSWER-A list of assets, usually containing the value of
individual items
Type: Asset
Statement: Balance Sheet
Current Account

Wages Payable - CORRECT ANSWER-This account is used to record employee
compensation that has not yet been received by the employee
Type: Liability
Statement: Balance Sheet
Current Account

Common Stock - CORRECT ANSWER-Term used to describe the total amount paid in
by stockholders for the shares they purchase.
Type: Equity
Statement: Balance Sheet

Accumulated Depreciation - CORRECT ANSWER-A contra asset account representing
the total depreciation taken to date.
Type: Contra-Asset
Statement: Balance Sheet

Income Taxes Payable - CORRECT ANSWER-Type: Liability
Statement: Balance Sheet
Current Account

Prepaid Expense - CORRECT ANSWER-Cash paid for an expense in one fiscal period
that is not used until a later period
Type: Asset
Statement: Balance Sheet
Current Account

Dividens payable - CORRECT ANSWER-Type: Liability
Statement: Balance Sheet
Current Account

Depreciation Expense - CORRECT ANSWER-the portion of a plant asset's cost that is
transferred to an expense account in each fiscal period during a plant asset's useful life
Type: Expense
Statement: Income Statement