ACCT 370 Connect Smartbook Assignment 2 solutions complete answers

ACCT 370 Connect Smartbook Assignment 2 solutions complete answers 

 

            occurs when managers exploit the flexibility in GAAP to achieve particular reporting results which may mask the company's underlying performance.

 

A       account is an account that is subtracted from another account to which it relates.

 

      EPS reflects what basic EPS would have been if all potentially dilutive securities were converted into common shares.

 

After the closing process is complete,

 

The approach of tying expense recognition to revenue recognition is know as the

 

Blaze Corporation incurs salaries of $12,000 for employees for the month of December but the paychecks will not be processed until January 3 of the following year. The adjusting entry at year end would include

 

Brighton Corporation buys an office building for $350,000, paying $30,000 in cash and financing the remainder with a note payable. The journal entry for this transaction would

 

The calculated misapplication of GAAP such as capitalizing an amount when it should be expensed is known as

 

A change in equity of a business entity that occurs during a reporting period from transactions or events from nonowner sources is know as            .

 

Comprehensive income includes

 

Costs of physically producing a good are called       costs.

 

Costs that are difficult to associate with a specific revenue are called       costs

 

Costs that are easily matched to the revenue earned are called       costs.

 

Credits increase which of the following accounts?

 

Deferred subscription revenue is a(n) ______ account.

 

During December, Howard Corporation provides services to a customer and sends them a bill for the amount due of $1,750. The adjusting entry at year end includes

 

Excessive write-offs and overstated estimated charges for future expenditures are known as:

 

Expenses result in       in owners' equity.

 

Gains and losses that arise from a firm's continuing operations but that are not typical, recurring costs are called             occurring items.

 

If a component becomes a discontinued operation in a reporting period but has not been sold by the end of the period, the income effects of the discontinued operations that are reported include

 

Income attributable to common shareholders divided by the weighted average number of common shares outstanding results in       EPS.

 

Income or loss from operating a discontinued component and any gain or loss from disposal or impairment are reported net of tax effects. This is called       income tax allocation.

 

An increase in an asset can be offset by

 

In January 2020, Livingston Publishing sells three-year subscriptions to its annual publication to 500 customers for $30 each. Publishing and distribution expenses each year are $3,000. Under the accrual basis of accounting, net income for 2021 is

 

In January 2020, Livingston Publishing sells three-year subscriptions to its annual publication to 500 customers for $30 each. Under the accrual basis of accounting, the entry to record the cash received includes

 

In January 2020, Livingston Publishing sells three-year subscriptions to its annual publication to 500 customers for $30 each. Under the accrual basis of accounting, the revenue recognized in 2020 is

 

An insurance policy was purchased on January 1 for $12,000. The policy was to cover twelve months. The adjusting entry to show that one month's coverage has lapsed on January 31 would be for what amount?

 

Ludington Corporation receives a utility bill for December but the bill will not be paid until January 7, its due date. The adjusting entry at year end would include

 

Marketing costs like advertising and sales commissions are

 

Marley Corporation issues $500,000 common stock for cash. The journal entry to record this transaction would include

 

The most common category of separately disclosed earnings components are reported

 

The multiple-step income statement separates earnings into two components which include

 

The process of getting revenue and expense accounts ready for the next period's transactions is known as

 

The process of recognizing traceable costs in expense in the same period as the corresponding revenue is referred to as

 

The process used to transfer journal entries to T-accounts is called      .

 

Publicly traded companies must report earnings per share (EPS) numbers

 

Revenues result in       in owners' equity.

 

Sales on account are recorded on the ______ side of Accounts Receivable and collections on account are recorded on the ______ side.

 

Sedona Corporation receives $7,500 in consulting fees in advance of providing services. By year end, 40% of this work has been completed. The adjusting entry at year end would include

 

Sedona Corporation receives $7,500 in consulting fees in advance of providing services. The journal entry to record this transaction would include

 

A disposal group is considered held for sale if which of the following conditions are met?

 

Adjusting entries include which of the following categories?

 

An insurance policy was purchased on January 1 for $12,000. The policy was to cover the entire year. The adjusting entry to show that one month's coverage has lapsed on January 31 would include which of the following?

 

Brighton Corporation buys an office building for $350,000, paying $30,000 in cash and financing the remainder with a note payable. The journal entry for this transaction would include

 

Closing entries would include

 

Components of gross profit include (select all that apply)

 

During December, Howard Corporation provides services to a customer and sends them a bill for the amount due of $1,750. The adjusting entry at year end

 

Examples of unusual or infrequently occurring items include

 

Sedona Corporation receives $7,500 in consulting fees in advance of providing services. By year end, 40% of this work has been completed. The adjusting entry at year end would

 

The balance sheet equation can be stated as

 

Under accrual accounting, revenue is recorded when (select all that apply)

 

Under U.S. GAAP, a component of an entity may include

 

Which of the following elements must be reported as part of discontinued operations when the discontinued component is sold before the end of the reporting period?

 

Transactions whose ultimate payoffs result from events that have already occurred and whose dollar flows can be predicted fairly accurately are known as       transactions. (Enter one word only per blank.)

 

True or false: If a component has been disposed of, it is treated as a discontinued operation if the disposal represents a strategic shift that has a major effect on an entity's operations and financial results.

 

True or false: Separate T-accounts are maintained for each asset, liability, and owners' equity account.

 

A type of income statement that subdivides income in order to facilitate forecasting is call a ________ income statement.

 

Under the accrual basis of accounting, expenses are based on

 

Unusual or infrequently occurring items

 

U.S. GAAP requires firms to display the components of comprehensive income in

 

When the discontinued component is sold before the end of the reporting period, they must report

 

Which of the following is a reason for earnings management becoming increasingly common in today's marketplace?

 

Which of the following is the most common category of separately disclosed earnings component?

 

Which transaction would increase the inventory account?

 

Williams Corporation purchased an insurance policy with an annual premium of $5,000 on July 1. The adjusting entry on December 31 includes

 

Williams Corporation purchased an insurance policy with an annual premium of $5,000 on July 1. The journal entry to record this transaction represents an