21) Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received the client's check by mail on January 5. Which of the following accounts should appear on the income statement for the year ended December 31 as per the revenue recognition principle? A) Service Revenue B) Unearned Revenue C) Accounts Payable D) Prepaid Expense 22) Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received a check by mail on January 5. As per […]

Learning Objective 1-3 1) Liabilities represent creditors' claims on the business's assets. 2) The left side of the accounting equation measures the amount that the business owes to creditors and to the owner. 3) The total of amount of assets that a business possesses, may or may not equal the total of liabilities and equity of the business. 4) Equity increases when revenues are earned. 5) Equity decreases with expenses and revenues. 6) Owner's withdrawals are the expenses of a business. 7) A debt that a business owes to an outside party is called: A) an asset. B) a liability. […]

82) Liquidity Asset Management Debt Profitability Acid test ratio 83) Liquidity Asset Management Debt Profitability Times interest earned 84) Liquidity Asset Management Debt Profitability Accounts receivable turnover 85) Liquidity Asset Management Debt Profitability Gross profit rate 86) Liquidity Asset Management Debt Profitability Asset turnover

  11) The financial loss that each stockholder in a corporation can incur is unlimited. 12) The death of an individual shareholder of the corporation will terminate the corporation. 13) The stockholders of a corporation have no mutual agency. 14) The Articles of Incorporation are submitted to the President of the United States. 15) Stockholders do not have to pay federal income tax on their stock dividends. 16) Corporations are subject to more government regulations than sole proprietorships and partnerships. 17) Double taxation is said to be an advantage of a corporation. 18) List and discuss the (a) advantages and […]

  11) Market value per share is the price per share a corporation pays to holders of stock when it is redeemed. 12) Book value per share is the same as par value per share. 13) Redemption value is the price at which a share of stock is bought and sold. 14) Book value per share is found by dividing total assets by total stockholders' equity. 15) Book value per share is calculated for both preferred stock and common stock. 16) When calculating book value per share, if a redemption value is not stated, market value is used instead. 17) […]