Acct 211 Final Liberty University Study Guide Questions And Correct Answers

Refunds or credits given to customers for unsatisfactory merchandise {Ans: sales returns & allowances}The adjusting entry to record earned revenue for previously recorded unearned revenue: {Ans: Debut unearned legal fees and credit legal fees earned}What assets are readily converted to a known cash amount? {Ans: Cash Equivalents}Obligations to be paid within one year or the company's operating cycle, whichever is longer, are: {Ans: current liabilities}Advantages of bonds: {Ans: -bonds do not affect owner control -interest on bonds is tax deductible -bonds can increase return on equity}GLAADD {Ans: G- gain on sale (-) L- loss on sale (+) L- (current) liabilities A- (current) assets A- amortization expenses (+) D- depreciation expenses (+)}