ACCTG 241 Final Exam Review

Dividends are considered a return of capital, NOT an expense to the business.

Which of the following will NOT be closed into retained earnings?

When using the indirect method for statement of cash flows, an increase in a current asset will be _________ net income.

Which assumption states that the activities of an entity should be kept separate from the activities of its owner?

When a company issues common stock for cash it will be included in the financing section of the statement of cash flows.

Revenue should be recognized when the performance obligation is satisfied.

Which of the following principles states that when assets are acquired they should be recorded at cost?

Double-Declining balance will create more depreciation expense in the first year than straight-line depreciation.

Which of the following is NOT classified as an "other" item on the Income Statement

A pass-through entity will only be taxed at the business entity level.

GAAP allows the use of the LIFO cost flow assumption, but IFRS does not.

The Net Realizable Value of accounts receivable is "Accounts Receivable - Allowance for Doubtful Accounts."

If a company buys or sells a piece of equipment is will be included in the _____ section of the Statement of Cash Flows.

The goal with depreciation is to show the fair market value of the asset on the balance sheet.

Compared to IFRS, GAAP is more

A revenue account increases with a

Cash received from a customer should be put in the financing section of the statement of cash flows.