ACC 281 Week 5 Post Assessment: Accounting
1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively balance sheet and income statement (Yes. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)
2. How does financial accounting differ from managerial accounting managerial accounting deals with internal reporting and financial deals with internal reporting (Yes. Managerial accounting deals with internal reporting and financial accounting deals with external entities)
3. What calculation would you use to determine the net income
Revenues minus expenses equal net income. (Yes. Net Income = revenues – expenses)
4. Your healthcare organization recently purchased some office equipment on account. The proper entry would involve a debit to Office Equipment and credit to Accounts Payable. (Yes. The proper entry would be a debit to Office Equipment and a credit to Accounts Payable.)
5. The income statement and balance sheet approaches are used to estimate uncollectible accounts. Which of the following comments applies to both of these approaches
The aging process is often used to obtain proper valuation amounts. (Yes. The aging process is often used to obtain proper valuation amounts.)
6. Kaplan’s Medical Clinic uses the allowance method of accounting for bad debts. The company recently wrote off the $135 balance of Karen Sorrell as uncollectible. As a result of the write-off, Kaplan’s Medical Clinic will experience a $135 decline in the net realizable value of Accounts Receivable. (Yes. Kaplan would experience a $135 decline in the net realizable value of Accounts Receivable.)
7. The inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are sold is
FIFO. (YES. First in First Out (FIFO) is the inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are
2. How does financial accounting differ from managerial accounting managerial accounting deals with internal reporting and financial deals with internal reporting (Yes. Managerial accounting deals with internal reporting and financial accounting deals with external entities)
3. What calculation would you use to determine the net income
Revenues minus expenses equal net income. (Yes. Net Income = revenues – expenses)
4. Your healthcare organization recently purchased some office equipment on account. The proper entry would involve a debit to Office Equipment and credit to Accounts Payable. (Yes. The proper entry would be a debit to Office Equipment and a credit to Accounts Payable.)
5. The income statement and balance sheet approaches are used to estimate uncollectible accounts. Which of the following comments applies to both of these approaches
The aging process is often used to obtain proper valuation amounts. (Yes. The aging process is often used to obtain proper valuation amounts.)
6. Kaplan’s Medical Clinic uses the allowance method of accounting for bad debts. The company recently wrote off the $135 balance of Karen Sorrell as uncollectible. As a result of the write-off, Kaplan’s Medical Clinic will experience a $135 decline in the net realizable value of Accounts Receivable. (Yes. Kaplan would experience a $135 decline in the net realizable value of Accounts Receivable.)
7. The inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are sold is
FIFO. (YES. First in First Out (FIFO) is the inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are