The Financial Statements quiz #3 Flashcards
The Financial Statements quiz #3
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What is the meaning of 'wage expense'?
'Wage expense' is the cost of wages paid to employees. What is the meaning of 'prepaid insurance'?
'Prepaid insurance' is an asset representing insurance premiums paid in advance. What is the meaning of 'dividends' in accounting?
'Dividends' are distributions of earnings to shareholders and are classified as an equity account. What is the meaning of 'fees earned'?
'Fees earned' is a revenue account representing income from services provided. What is the meaning of 'interest expense'?
'Interest expense' is the cost incurred for borrowed funds. What is the meaning of 'rent expense'?
'Rent expense' is the cost of renting property or equipment. What is the meaning of 'utilities expense'?
'Utilities expense' is the cost of utilities such as electricity, water, and gas. What is the meaning of 'depreciation expense'?
'Depreciation expense' is the allocation of the cost of tangible assets over their useful lives. What is the meaning of 'amortization expense'?
'Amortization expense' is the allocation of the cost of intangible assets over their useful lives. What is the meaning of 'cost of goods sold'?
'Cost of goods sold' is the direct cost of producing or purchasing goods sold during a period. What is the meaning of 'supplies expense'?
'Supplies expense' is the cost of supplies used during a period. What is the meaning of 'insurance expense'?
'Insurance expense' is the cost of insurance coverage for a period. What is the meaning of 'advertising expense'?
'Advertising expense' is the cost of promoting products or services. What is the meaning of 'income tax expense'?
'Income tax expense' is the cost of income taxes incurred during a period. What is the meaning of 'maintenance expense'?
'Maintenance expense' is the cost of maintaining equipment or property. What is the meaning of 'bad debt expense'?
'Bad debt expense' is the estimated cost of uncollectible accounts receivable. What is the meaning of 'interest revenue'?
'Interest revenue' is income earned from lending money or investments. What is the meaning of 'gain on sale of asset'?
'Gain on sale of asset' is the profit from selling an asset for more than its book value. What is the meaning of 'loss on sale of asset'?
'Loss on sale of asset' is the loss from selling an asset for less than its book value. What is the meaning of 'unearned revenue'?
'Unearned revenue' is a liability representing payments received before services are performed or goods are delivered. What is the meaning of 'salaries payable'?
'Salaries payable' is a liability representing salaries owed to employees but not yet paid. What is the meaning of 'interest payable'?
'Interest payable' is a liability representing interest owed but not yet paid. What is the meaning of 'dividends payable'?
'Dividends payable' is a liability representing dividends declared but not yet paid to shareholders. What is the meaning of 'mortgage payable'?
'Mortgage payable' is a liability representing amounts owed on property loans. What is the meaning of 'capital stock'?
'Capital stock' is an equity account representing the total amount of stock issued to shareholders. What is the meaning of 'contributed capital'?
'Contributed capital' is the total value of cash and other assets contributed by shareholders. What is the meaning of 'accumulated other comprehensive income'?
'Accumulated other comprehensive income' is a component of equity that includes certain gains and losses not included in net income. What is the meaning of 'deferred revenue'?
'Deferred revenue' is a liability for cash received before earning the related revenue. What is the meaning of 'prepaid rent'?
'Prepaid rent' is an asset representing rent paid in advance. What is the meaning of 'prepaid advertising'?
'Prepaid advertising' is an asset representing advertising costs paid in advance. What is the meaning of 'prepaid supplies'?
'Prepaid supplies' is an asset representing supplies paid for but not yet used. What is the meaning of 'allowance for doubtful accounts'?
'Allowance for doubtful accounts' is a contra-asset account estimating uncollectible receivables. What is the meaning of 'accumulated depreciation'?
'Accumulated depreciation' is a contra-asset account showing the total depreciation of assets to date. What is the meaning of 'accumulated amortization'?
'Accumulated amortization' is a contra-asset account showing the total amortization of intangible assets to date. What is the meaning of 'capital lease obligation'?
'Capital lease obligation' is a liability representing the present value of lease payments owed under a capital lease. What is the meaning of 'franchise' as an asset?
'Franchise' is an intangible asset representing the right to operate a business using a franchisor's brand and system. What is the meaning of 'goodwill' as an asset?
'Goodwill' is an intangible asset representing the excess of purchase price over the fair value of net identifiable assets acquired. What is the meaning of 'organization costs'?
'Organization costs' are expenses incurred in forming a corporation, often classified as an intangible asset. What is the meaning of 'trademark' as an asset?
'Trademark' is an intangible asset representing exclusive rights to use a brand name or symbol. What is the meaning of 'copyright' as an asset?
'Copyright' is an intangible asset representing exclusive rights to reproduce and sell creative works.