Accounting: Intangible Assets and Liabilities
29 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of assets are copyrights, patents, goodwill, franchises, trademarks, and licenses?

  • Intangible assets (correct)
  • Material assets
  • Tangible assets
  • Monetary assets

    • What is the category of liabilities that includes debts or obligations with an expected payment due within the regular operating cycle of a single year?

  • Long-term liabilities
  • Contingent liabilities
  • Non-current liabilities
  • Current liabilities (correct)

    • What type of liability represents amounts owed to employees for services they have already rendered?

  • Salaries payable (correct)
  • Interest payable
  • Taxes payable
  • Accounts payable

    • What is the term for liabilities that are not evidenced by a written promise to pay?

    <p>Accounts payable</p> Signup and view all the answers

    What type of liability represents the amount of promissory notes that have not been repaid?

    <p>Notes payable</p> Signup and view all the answers

    What is the term for business long-term debt for which property has been given as security or collateral?

    <p>Mortgage payable</p> Signup and view all the answers

    What type of contract is typically recorded in the Bonds Payable account?

    <p>Long-term contract of indebtedness</p> Signup and view all the answers

    What does the owner's equity represent in a business?

    <p>The owner's claim over the business's assets after liabilities have been deducted</p> Signup and view all the answers

    What is recorded in the Revenues or Income account?

    <p>Inflow of cash or other assets from clients or customers</p> Signup and view all the answers

    What is another term for Owner's Equity?

    <p>Net Worth</p> Signup and view all the answers

    What type of account is used to record the investment or share of the owner in a business?

    <p>Owner's Capital account</p> Signup and view all the answers

    What is the purpose of the Drawing or Owner's Personal account?

    <p>To record the withdrawals of capitals by the owner for personal use</p> Signup and view all the answers

    What is the effect of incurring expenses on the asset and owner's equity?

    <p>Decreases the asset and decreases owner's equity</p> Signup and view all the answers

    What is the type of expense that includes the cost of electricity, water, and fuel consumed by the business?

    <p>Utilities expenses</p> Signup and view all the answers

    What is the purpose of rent expenses?

    <p>To pay for the lease and occupation of property premises</p> Signup and view all the answers

    What is the type of expense that includes the premiums or insurance policies paid by the business?

    <p>Insurance expenses</p> Signup and view all the answers

    What is the type of expense that includes the allowance given for travel?

    <p>Traveling expenses</p> Signup and view all the answers

    What is the sum added to the principal of money obligations?

    <p>Interest expenses</p> Signup and view all the answers

    What type of expenses are incurred in connection with marketing and promoting products?

    <p>Advertising expenses</p> Signup and view all the answers

    What happens to the productivity and value of plant assets over time?

    <p>It decreases</p> Signup and view all the answers

    What is the purpose of an account in accounting?

    <p>To group, summarize, or classify changes caused by transactions</p> Signup and view all the answers

    What is the effect of a debit on assets and expenses?

    <p>Increase in assets and expenses</p> Signup and view all the answers

    What occurs when the total amount of debits exceeds the total amount of credits in an account?

    <p>Debit balance</p> Signup and view all the answers

    What type of claims are represented by liabilities?

    <p>Outsider claims</p> Signup and view all the answers

    What is the primary objective of the Economic Order Quantity (EOQ) model?

    <p>To minimize total inventory costs</p> Signup and view all the answers

    Which inventory control system is considered the most efficient, given the necessary technology?

    <p>Perpetual method</p> Signup and view all the answers

    What is the primary limitation of the stock record system?

    <p>It is difficult to determine the optimum number of units to order</p> Signup and view all the answers

    What is the underlying principle of the open-to-buy budget system?

    <p>Adjusting purchases based on increases or decreases in sales from the previous month</p> Signup and view all the answers

    What is the primary advantage of the perpetual method?

    <p>It provides precise inventory levels in real-time</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser