BA220 Financial Accounting, Week 8 Final Assignment

W8 "Final Exam"

Question 1

1. According to the Week 5 lecture, why do most businesses fail within the first few years?

Question 2

If an Accounts Receivable account is not eventually converted into cash, what happens to the amount of money in the account after a pre-determined period of time?

Question 3

1. It’s possible to make a lot of sales, pay minimal expense, and still go bankrupt.  True or False?

Question 4

Most businesses practice Accrual Base or Cash Base Accounting?

Question 5

1. What is the first step when reconciling your cash account/bank statement?

Question 6

What is the second step when reconciling your cash account/bank statement?

Question 7

1. What is the third step when reconciling your cash account/bank statement?

Question 8

What is the fourth step when reconciling your cash account/bank statement?

Question 9

1. How often should a reconciliation of the cash account occur?

Question 10

If a client writes the company a bad check to pay for services/products, and you charge them an administrative fee to make sure the amount eventually gets paid. What type of account is credited?

Question 11

1. According to the Week 6 lecture, how can a business increase sales of the company?

Question 12

1. What kind of a fee do you have to pay if you accept credit cards?

Question 13

1. What term is used to describe the value of a company has through its reputation?

Question 14

1. Would goodwill be considered a tangible or an intangible asset?

Question 15

1. What is the equivalent of depreciation for an intangible asset?

Question 16

1. What is the equivalent of depreciation for a natural resource?

Question 17

1. What are the three items needed to calculate depreciation?

Question 18

1. A piece of equipment is purchased for $10,000, has a salvage value of $2,000, and an estimated useful life of 4 years.  Using the straight-line depreciation method, how much is depreciated per year for the next 4 years?

Question 19

1. A piece of equipment is purchased for $10,000, has a salvage value of $2,000, and an estimated useful life of 4 years.  Using the double-declining balance method, how much is depreciated per year for the next 2 years?

Question 20

1. How does an “Accumulated Deprecation” account get increased; debit or credit?

Question 21

1. What are the three levels of the Cash Flow Statement?

Question 22

1. What type of income statement separates out the “Gross Margin”, “Operating Income” and “Net Income”?

Question 23

1. What does FUTA stand for?

Question 24

1. What does FICA stand for?

Question 25

1. What amount is income capped at to pay FICA – Social Security Tax on?

Question 26

1. What is the term given to the borrower of a bond?

Question 27

1. What is the term given to the lender of a bond?

Question 28

1. What is the interest rate called which is multiplied by the bond’s face value when issuing pre-determined payments to the bondholder?

Question 29

1. What is the amount to pay off the bond (debt) when it is more than the face value?

Question 30

1. What is the amount to pay off the bond (debt) when it is less than the face value?

Question 31

1. What step takes place after the accountant analyzes the transaction (Step 1).

Question 32

1. What is the step before the final step (Step 8: Close the Books).

Question 33

1. Which financial statement displays how the accounting equation balances?

Question 34

1. Are revenue, expense, and withdrawal accounts temporary or permanent accounts?

Question 35

1. Are cash, equipment, accounts payable, and capital accounts temporary or permanent accounts?

Question 36

1. The General ___________ is a diary of each specific account from under each component of the accounting equation. 

Question 37

1. What are the three reports within the Accounting Worksheet?

Question 38

1. What is the report called which is the preliminary to the Income Statement and Balance Sheet (it’s contained in the Accounting Worksheet).

Question 39

1. What account are the temporary accounts closed out to before everything is taken to Retained Earnings?

Question 40

1. What is the most fundamental lesson in which the accounting profession is built off of?