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Balance Sheet

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What are the elements of financial statements?


Is it possible to have a balance sheet for a single day?


What is the difference between a note payable and a bond payable?


Where is a contract with a customer reported on the balance sheet?


How is petty cash reported on the financial statements?


Why are debt issue costs classified as an asset?


What is the transaction approach and balance sheet approach to measuring net income?


What is the difference between accounts payable and accrued expenses payable?


How should an interest only loan be recorded?


What is the difference between stocks and bonds?


Where is a contingent liability recorded?


How does an expense affect the balance sheet?


What is the difference between a balance sheet and a trial balance?


How can working capital be improved?


What is the entry for the down payment from a signed contract?


Are fixed assets the same as plant assets?


Is a money market account a current asset or a fixed asset?


Is income tax an expense or liability?


What is the entry when merchandise has been received but not the vendor’s invoice?


How do you calculate accrued vacation pay?


Why are the issue costs of bonds reported as an asset?


What is Construction Work in Progress?


What is solvency?


What is liquidity?


What is a debenture?


Why are bonds payable less costly than common stock?


Is the installation labor for a new asset expensed or included in the cost of the asset?


Is a security deposit a current asset?


Where does accrued interest on notes receivable get reported on the balance sheet?


Why aren’t retained earnings distributed as dividends to the stockholders?


What is financial leverage?


What is the difference between receivables and accounts receivable?


What is an intangible asset?


What is retained earnings?


How do I record a loan payment which includes paying both interest and principal?


How do you account for bond issue costs?


What is materiality?


Why does a company’s profit appear as a credit on its balance sheet?


Where can I find an illustration of a common size balance sheet?


Why is the accuracy of inventory valuation so important?


Why would Prepaid Insurance have a credit balance?


Where does revenue received in advance go on a balance sheet?


What is the debt to total assets ratio?


What is the double declining balance method of depreciation?


How do you record bonds that are issued?


What are bonds payable?


Are liabilities always a bad thing?


How do I calculate the amount of sales tax that is included in total receipts?


What is a certificate of deposit?


Where is accrued income reported in the balance sheet?


Is it okay to have negative amounts in the equity section of the balance sheet?


Where can I learn about the accounting terms used in not-for-profit organizations?


What is the purpose of subsidiary ledgers?


Why isn’t a key employee reported as an asset on the balance sheet?


Is the sales tax paid on merchandise that you will resell an expense?


How do you record the sales tax on the purchase of an asset?


What is the difference between the Cash Flow and Funds Flow statements?


How do you record an asset that was partially financed?


What is the difference between a land improvement and a leasehold improvement?


If a mortgage payment is due by December 31, but the payment is not made until the following month, should the loan payment be accrued at December 31?


Why is the P&L profit entered on the credit side of the balance sheet?


What is the difference between assets and fixed assets?


What is the difference between net income and comprehensive income?


What is an example of an unrealized gain?


What is the advantage of issuing bonds instead of stock?


Which financial ratios are considered to be efficiency ratios?


What is window dressing?


What is the accounts receivable collection period?


What is the fixed asset turnover ratio?


What is the debt ratio?


What is the difference between paid in capital and retained earnings?


What is the book value per share of stock?


What is the total asset turnover ratio?


What is the return on assets ratio?


What is the working capital turnover ratio?


What is the working capital ratio?


What is meant by reconciling an account?


What is the days’ sales in accounts receivable ratio?


What is a liquidity ratio?


What is the days’ sales in inventory ratio?


What is the inventory turnover ratio?


What is the debt to equity ratio?


How should the cost of a yearly subscription for a newspaper be recorded?


What is the accounts receivable turnover ratio?


What is the acid test ratio?


What is reported as property, plant and equipment?


What is the current ratio?


What is meant by events after the balance sheet date?


In what order are liabilities listed in the chart of accounts?


What is the difference between a trial balance and a balance sheet?


How do I record exterior cement work? Is it an asset or an expense?


What is a classified balance sheet?


What is capital surplus?


Is contributed capital a non-current asset or a current asset, and is it a debit or credit?


What is a burden rate in inventory?


Why can a retailer record its purchase of merchandise as a debit to purchases within the cost of goods sold, instead of the asset inventory?


What is the difference between reserve and allowance?


What is the entry when a company lends money to an employee?


Why is a product that sells for $50 reported in inventory at its cost of $40?


How do you report a write-down in inventory?


How do I determine my payroll tax liabilities?


If cash and a note are exchanged for a plant asset, is the amount of the note used in the depreciation calculation?


Under accrual accounting, how are worker comp premiums handled?


Is the sales tax on merchandise purchased for resale included in inventory?


What is the difference between cost and expense?


Why is prepaid insurance a short term asset?


Why does an inventory error affect two periods?


If inventory is understated at the end of the year, what is the effect on net income?


Why is the distinction between product costs and period costs important?


Why isn’t the direct write off method of uncollectible accounts receivable the preferred method?


Is it acceptable for companies to use two methods of depreciation?


Is a prepaid expense recorded initially as an expense?


What is meant by the term going concern?


What if an employee’s actual vacation payment is greater than the amount that has been accrued?


Are income taxes affected by accelerated depreciation?


What accounts for the difference in inventory values between periodic LIFO and perpetual LIFO?


What is an unpresented cheque or check and does it require an adjustment to the balance sheet?


Where should I enter unpaid wages?


Can absorption costing cause an increase in net income?


Why is there a difference in the amounts for Bad Debts Expense and Allowance for Doubtful Accounts?


What is the entry for a loan to an employee?


Why does a cost system developed for inventory valuation distort product cost information?


What type of account is the Dividends account?


Why is depreciation on the income statement different from the depreciation on the balance sheet?


What is the difference between an adjunct account and a contra account?


What is a limitation of the inventory turnover ratio?


What entry is made when selling a fixed asset?


Is the cost of land, buildings, and machinery a fixed cost?


If a company issues stocks or bonds to pay outstanding debt, should this noncash transaction be included in the cash flow statement?


What is the meaning of debtor?


What is a contingent asset?


What are the effects of depreciation?


What is a balance sheet and why is it prepared?


Is a utility bill an expense?


How do you account for a project under construction?


What is the difference between reserve and provision?


When will a transaction affect only one side of the accounting equation?


How do you amortize goodwill?


What does current portion of long term debt mean?


What is net of accumulated amortization?


What is the difference between unearned revenue and unrecorded revenue?


What are common-size financial statements?


What is net realizable value?


What is a deferred credit?


What is the distinction between debtor and creditor?


What is Form 10-K?


Will the adjusting entry amounts appear in the balance sheet and income statement?


Is the provision for doubtful debts an operating expense?


Should inventories be reported at their cost or at their selling prices?


What are accrued expenses and when are they recorded?


What are accrued revenues and when are they recorded?


What is a line of credit?


What is a letter of credit?


How do you estimate the amount of uncollectible accounts receivable?


What is the difference between the terms capitalize and depreciate?


What is the meaning of equity?


What is the difference between product costs and period costs?


What is the rationale for not reporting plant assets at their liquidation value?


How should the sale of gift certificates be recorded in the general ledger?


What is cost incurred?


What is the difference between vertical analysis and horizontal analysis?


What is the quick ratio?


What are consolidated financial statements?


How do you record a payment for insurance?


How do you calculate the gain or loss when an asset is sold?


What is the provision for bad debts?


When does a negative cash balance appear on the balance sheet?


What is the deferred revenue?


How many years is the appropriate time for depreciating leasehold improvements?


What is the definition of capital market?


How do you record an owner’s money that is used to start a company?


If a company earns a profit, which balance sheet items change?


How do drawings affect the financial statements?


How are fully depreciated assets reported on the balance sheet?


What conditions cause a discount on bonds payable?


When calculating inventory turnover, do you use sales or the cost of goods sold?


What is the effect on the income statement when the allowance for uncollectible accounts is not established?


What is a capital expenditure versus a revenue expenditure?


How does petty cash affect expenses?


What is a deferred cost?


When should a product warranty liability be recorded?


What is a contingent liability?


Would you please explain unearned income?


What is capitalized interest?


Should trademarks be included on the balance sheet?


Are LIFO inventory amounts ever written-up to their market value?


What is the meaning of arrears?


What is an imprest system of petty cash?


What causes a reduction in Accumulated Depreciation?


How should a mortgage loan payable be reported on a classified balance sheet?


What is a contingent liability?


How do cash dividends affect the financial statements?


What is the difference between dividends and interest expense?


Why do companies use cost flow assumptions to cost their inventories?


What is a deferred expense?


What would cause a decrease in accumulated depreciation?


Where does a bond sinking fund appear on the balance sheet?


What is the expanded accounting equation?


What is the effective interest rate for a bond?


Where is the premium or discount on bonds payable presented on the balance sheet?


What is the difference between accounts payable and accounts receivable?


What is a LIFO Reserve?


Does paying an accounts payable affect net income?


Does collecting a customer’s accounts receivable affect net income?


What is the accounting journal entry for depreciation?


Are commissions considered to be revenues or expenses?


Is sales tax an expense or a liability?


How does revenue affect the balance sheet?


What is OEM and EOM?


Why do you separate current liabilities from long-term liabilities?


What does capitalize mean?


What does it mean to replenish the petty cash fund?


How do you record the sale of land?


Are undeposited checks reported as cash?


What is the difference between bad debt and doubtful debt?


What is the difference between Notes Payable and Accounts Payable?


Are retained earnings an asset?


What is the carrying amount?


What is the difference between a trial balance and a balance sheet?


Why is a negative cash balance reported as a liability?


What is the difference between a trial balance and a balance sheet?


What is the purpose of the Allowance for Doubtful Accounts?


What is book value?


Is a security deposit for a rental agreement recorded in a liability account?


Should receipts be recorded using the date the money was received or the date the money was deposited in the bank accounts?


What is the Allowance for Doubtful Accounts?


What is a provision for discounts allowable?


Why does our company’s balance sheet report its land at cost when it is so much more valuable?


How is working capital defined and measured?


The balance sheet and income statement are connected.


A corporation has a large balance in retained earnings. Does that mean that its dividends to stockholders will be increasing?


What are adjusting entries?


How should a mortgage loan payable be reported on a classified balance sheet?


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