click below
click below
Normal Size Small Size show me how
Chapter 14-Dividends
Question | Answer |
---|---|
What is a stockholder? | Owner of one or more shares of a corporation. |
What division of the chart of accounts is the owners' equity accounts for a corporation listed? | Stockholders' Equity |
What are retained earnings? | Earnings not yet distributed to stockholders. |
What is the normal balance for a dividends account? | Debit balance |
What is the name for a group of people elected to manage a corporation? | Board of Directors |
What action is required before a corporation can distribute income to its stockholders? | The Board of Directors declares a dividend. |
A declared dividend account is something like what other type of account? | Drawing account |
What accounts are used to record the declaration of a dividend? | Dividends and Dividends Payable |
When a declared dividend is paid, what account is debited? | Dividends Payable |
What is the purpose of a worksheet? | To plan adjustments and summarize the information necessary to prepare financial statements |
When the prepaid insurance account is adjusted, what does it show? | It shows the value of insurance that has been used |
What happens with merchandise during a fiscal period? | It is constantly increasing and decreasing |
Most accounts that need adjusted at the end of a fiscal period have what kind of related account? | temporary account |
Expenses should always be recorded during the same accounting period as what? | The same as when the revenue was earned |
What kind of account is the account Allowance for Uncollectible accounts? | It is a contra account |
Many businesses use what to estimate uncollectible accounts expense? | A percentage of total sales |
What are current assets? | Cash and other assets expected to be exchanged for cash or consumed within a year |
The Supplies-Office amount in a worksheets trial balance debit column represents the value of supplies when? | At the beginning of a fiscal period plus office supplies bought during the fiscal period |
What are the two accounts used to adjust the Office Supplies account? | Supplies-Office, and Supplies Expense-Office |
The portion of the insurance premiums that has expired during a fiscal period is classified as what? | an expense |
The amount of goods on hand for sale to customers is called what? | Merchandise inventory |
The two accounts used to adjust the merchandise inventory account are what? | Merchandise inventory, and income summary |
The income summary amount in a worksheets adjustments debit column represents what? | The decrease in merchandise inventory |
Recording expenses in the accounting period in which the expenses contribute to earning revenue is an application of the accounting concept what? | Matching expenses with revenue |
What are the two accounts used to adjust the uncollectible account? | Uncollectible accounts expense, and allowance for uncollectible accounts |
What are the two accounts used to adjust the depreciation of store equipment? | Accumulated depreciation-store equipment, and Depreciation expense-store equipment |
What are the two accounts used to record the adjustment for federal income tax? | Federal income tax payable, and Federal income tax expense |