Financial Accounting?
A machine with a cost of $2,500 became obsolete because of new technology and had to be discarded with no salvage value. Accumulated depreciation was $1,800 at the time. The disposal resulted in: (A) gain of $1,800 (B) gain of $700 (C) loss of $700 (D) no gain or loss A fire loss on a fully depreciated building currently in use would represent: (A) An accounting loss to the company (B) An economic loss to the company (C) Both accounting and an economic loss to the company (D) All the above answers are incorrect A stock split increasing the number of shares of stock also: (A) Reduces retained earnings and increases the paid-in capital (B) Usually creates a credit to a paid-in excess par account (C) Decreases the par value per share of the stock in direct proportion to the stock split (D) Does all the above On July 1, 2012, Aderholt Company sold for $35,200 cash a machine that it had acquired 4-1/2 years ago at a cost of $176,000. Depreciation has been recorded on the machine through 2011 using the straight-line method, an estimated useful life of 6 years, and an expected salvage value of $17,600. Prepare journal entries to record (A) depreciation for the one-half year prior to the sale and (B) to record the sale of the machine.
Anyone understand financial accounting?
1. Frazier Corporation shows a total of $650,000 in its Common Stock account and $2,400,000 in its Paid-in Capital Excess account. The par value of Frazier's common stock is $4. How many shares of Frazier stock have been issued? A. 162,500 ($650,000/$4) 2. Which of the following correctly describes the effect of declaring and distributing a common stock dividend? B. Total stockholders' equity remains the same. 3. On January 2, 2011, Tempe Corporation issued 50,000 shares of $20 par-value common stock for $24 per share. Which of the following statements is true? A. The Paid-in Capital in Excess of Par Value account will increase by $200,000. 4. The declaration and payment of a cash dividend: D. reduces both assets and retained earnings by the amount of the dividend. 5. Which of the following statements about earnings per share is correct? D. It is calculated using the number of common shares of stock outstanding. 6. The par value of a company's stock: B. has little connection to the market value of the stock. 7. A stock dividend : A. results in a transfer of retained earnings to contributed capital.
Which is the best book for understanding financial accounting for a non-commerce student?
"Financial Accounting" by R. L. Gupta and V. K. Gupta (published by Sultan Chand).When I first studied Accountancy, it was for my Foundation level of CS. Now, before that, I was a student of Science stream. I was the only one in my class who did not have any background of Accountancy, while my batch mates had been studying it for at least 2 years (some, for more) because they were students of Commerce stream. The teachers teaching would speak (teach) in terms that were too advanced for me. I felt like a kid of 3rd standard studying for 5th.I needed to study from ground up. I had to get my basics in place before I could learn the way my batch mates were learning. It was at this time when I turned to this book. The concepts that I learnt from this book have made my basics so strong that, today, after nearly eight years, I still use them to solve my problems.For anyone who wishes to learn from the A-B-C.. of Accountancy, I would recommend this book. I hope it still is in publication.
What is the easiest way to learn financial accounting?
I’ve posted this answer elsewhere on Quora, but I think these tips will be helpful to you too!While college is definitely one way of learning accounting, there are plenty of easily-accessed, free resources available. I truly believe anyone can learn accounting—all it takes is being willing to learn and knowing where to look. Here are some of the best resources that I used when I first taught myself accounting.Read BooksOne of the first stops on the road to learning bookkeeping should be your local library. Pick up books like:Accounting for DummiesBookkeeping for DummiesComplete Idiot’s Guide to AccountingKeeping the Books: Basic Bookkeeping and Accounting for Small BusinessesAccounting DemystifiedRead anything and everything you can get your hands on. Reading terms and definitions multiple times is the key to remembering concepts. Each book also explain concepts in a different way, and maybe what is confusing in one books makes total sense in another.You could even pick up an Accounting or Bookkeeping textbook that many colleges use and go through it at your own pace.Watch VideosAnother often overlooked free resource is online accounting videos. Many professors and CPAs record YouTube videos on specific accounting concepts, like: What is accounting? What are accounts payable? What are credits and debits?One of my go-to videos is the Accounting 1 series by JCCCVideo. This series is composed of 30 videos of an actual Introduction to Accounting college class. This is a great option if you’re a visual and auditory learner.Write NotesWhile you’re reading books and watching videos, take notes. Try to write things in your own words. Maybe even try to teach the concepts you learn to a friend or a spouse. When you are forced to explain a concept in your own words, you’ll truly know if you understand it and increase your chances of remembering the concepts you learn.You Can Do It!Believe me, I know how confusing and intimidating learning bookkeeping can be. But you can absolutely do it. If you ever have any questions, feel free to check out Merchant Maverick where our blog features articles like The Quick Guide to Accounting Terms and Concepts, How to Setup A Chart of Accounts, and more. Good luck and best wishes!
Why is it necessary for a finance manager to understand accounting information, if the firm.......?
Because the finance manager will need to look at the financial statements that were prepared by the accountants, and might want to understand how the accountants got to those figures. Also, the financial manager may want to communicate to the accounting staff using language that both parties will understand. It's the same reason why Accounting majors have to take a couple of Finance courses.
I need help with accounting and understanding Adjusting and Preparing Financial Statements?
Marsha Moder employs one college student every summer in her coffee shop. The student works the five weekdays and is paid on the following Monday. (For example, a student who works Monday through Friday, June 1 through June 5, is paid for that work on Monday, June 8.) Moder adjusts her books monthly, if needed, to show salaries earned but unpaid at month-end. The student works the last week of July—Friday is August 1. If the student earns $100 per day, what adjusting entry must Moder make on July 31 to correctly record accrued salaries expense for July?
Why is it important to understand accounting?
To save you from making poor financial decisions.A key purpose of accounting is to communicate to relevant stakeholders, up-to-date information about the financial performance and position of a business, so as to help them make informed decisions about the resources under their control. But accounting uses it's own language to communicate this information and to someone who doesn't understand the language, the message is lost. If you don't understand concepts like assets, liabilities, expenses, revenue, equity, payables, receivables, creditors, debtors, gross profit, cost of goods sold, accruals, liquidity, cashflow, net assets, retained earnings, goodwill, amortisation, depreciation ... what chance have you or any stakeholder got of understanding the components that communicate the financial performance and position of a business.If stakeholders, like owners, managers, staff, suppliers, investors, funders and customers don't understand what many people in business call 'the language of business', then they would be 'flying blind' when making decisions and are more than likely to make poor ones.
The important of financial accounting in civil engineering?
It really depends on what your role is. If you are only running technical numbers, you may not need to know as much. However, if you are in any kind of role of responsibility, at least some knowledge of finances is crucial. If you are in contracting or project work, financial understanding is important because whether or not you win jobs and whether or not you make money on jobs you win will depend on your understanding on the costs associated with the project.
Which is the best simple, easy-to-understand book on financial management and accounting for beginners?
Financial Management: Theory & Practice by Brigham and Ehrhardt explains FM assuming you have no prior base of Finance. For Financial Accounting, the one by Weygandt, Kimmel and Kieso is a comprehensive gextbook which covers all basic without scaring the hell out of you. Happy reading!