Accounting Final Exam 2024

Perpetual {Ans: An inventory system under which the company keeps detaied records of the cost of each inventory purchase and sales and the records continuously show the inventory that should be on hand.}Revenue Expenditures {Ans: expenditures that are immediately charges against revenues as an expense. Motor tune ups and oil changes, the painting of buildings and the replacing of worn-out gears on machinery.}Depreciation via Unit of Production/Units of activity {Ans: Depreciable cost/ total units of activity = Depreciation cost per unit Depreciable cost per unit X units of activity during the year = Annual depreeciation Expense}Current liabilities {Ans: Acct Payable Sales Taxes Payable Income taxes payable FICA taxes payable Unearned Rev Utilities Payable etc. Long-term liabilites some notes payable bonds payable - discount on bonds payable or plus premium on bonds payable mortgage payable}Purchase of Equipment for Cash {Ans: Changes the composition of Assets Journal entry: Cash decreases and Equipment Increases}SHE {Ans: Preferred Stock Common Stock Addititonal paid-in capital from CS an Preferred Stock and Treasury Stock RE less treasury stock}