IAD JMC Training

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Unearned Revenues or payments of customers received in advance are what type of accounts?

Entries to expenses such as Rent Expense are usually

A company receives $500 of cash as an additional investment in the company by its owner, Pedro Santinhos. The company's Cash account is increased and Pedro Santinhos’ capital is increased also. Please choose two options.

In September when the company receives the $2,000 from the customer, which account should the company debit?

Which of the following is a category or element of the balance sheet?

Telma Oliveira pays to Jimena Suarez. $1,000 in December for Jimena’s very famous cupcakes that will be delivered in 45 days. In December Jimena will debit Cash for $1,000; (take into account that Jimena uses the accrual basis of accounting). What will be the other account involved in the December accounting entry prepared by Jimena after receiving the cash? (and what type of account is it)?

On December 1, JM hired Mariana Gameiro to begin working on January 2 at a monthly salary of $4,000. JM's balance sheet of December 31 will show a liability of

Solange Martins & Co. has current assets of $50,000 and total assets of $150,000. Has current liabilities of $30,000 and total liabilities of $80,000. What is the amount of SM & Co.'s owner's equity?

When a company changes its book depreciation from an accelerated method to the straight-line method, it is considered to be a(n)

A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a __________ to the Allowance for Doubtful Accounts.

A company's inventory was destroyed in a fire on January 28, 2016. The company's December 31, 2015 inventory had a cost of $40,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing $36,000 and sales of $50,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2016?

On January 1, 2011 an asset was acquired for $30,000. Its useful life was expected to be 10 years and the salvage value is expected to be $0. After four years of use, the company realized the asset would be useful for only three more years. (In other words, the total useful life of the asset will be seven years instead of the original 10 years.) The company uses the straight-line method of depreciation. The Depreciation Expense in each of the years 2015, 2016, and 2017 will be

Which of the following depreciation methods is NOT an accelerated method?