COB 241 November 18, 2002

Accounting Jeopardy…

November 18, 2002

Today’s Categories… Cash Merchandising Organizations Accounting Terminology Financial Ratios The Balance Sheet Which Statement?

CashFinancial

Ratios Balance

SheetWhich

Statem’t?

$100 $100 $100 $100

$200 $200 $200 $200

$300 $300 $300 $300

$400 $400 $400 $400

$500

ActgTerms

$400

$100

$200

$300

$500

MdsingOrgs

$100

$200

$300

$400

$500 $500 $500 $500

Cash - $100

A small box containing a small amount of cash, and used for disbursements too small to be worth the normal cash disbursements paperwork.

What is Petty Cash?

Back to Board

Cash - $200

A credit to cash indicates the cash balance has done this.

What is a Decrease in the cash balance?

Back to Board

Cash - $300

When you pay an expense, you record this half of an entry to the cash account.

What is “Credit”?

Back to Board

Cash - $400

The bank issues this type of memo to notify you that they have reduced your checking account balance.

What is a Debit Memo?

Back to Board

Cash - $500

The name of the account used to write-off small cash account errors, when those errors are too small and immaterial to be worth the time needed to investigate them.

What is “Cash Short and Over”?

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Merchandising - $100

This balance sheet account holds the value of purchased merchandise (and its incoming freight) until the goods are sold.

What is the Inventory account?

Back to Board

Merchandising $200

When merchandise is sold on terms of Net 30, you debit this account for the amount charged to the customer.

What is “Accounts Receivable”?

Back to Board

Merchandising $300

When merchandise is sold, you debit this account for the cost of the products which went out the door with the customer.

What is “Cost of Goods Sold”?

Back to Board

Merchandising $400

When you sell merchandise, you credit this account for the amount charged the customer.

What is Revenue?

Back to Board

Merchandising $500

When a company sells merchandise, it credits this account for the cost of the goods that went out the door with the customer.

What is the Inventory account?

Back to Board

Terminology $100

A reduction in assets, caused by the normal operation of the business, is usually this.

What is an Expense?

Back to Board

Terminology $200

Alpha Corp. loans money to Zulu Co.; Zulu gives Alpha this document, which can then be freely traded on the secondary market.

What is a Marketable Security (or Debt Security)?

Back to Board

Terminology $300

DAILY DOUBLE!!!

Terminology $400

The most liquid asset of all.

What is Cash?

Back to Board

Terminology $500

One of the three methods of Accelerated Depreciation mentioned in class.

What is Sum-of-Years-Digits, OR Double-Declining Balance, OR MACRS?

Back to Board

Ratios - $100

Net Income divided by Number of Shares Outstanding.

What is Earnings per Share (or EPS)?

Back to Board

Ratios - $200

Current Assets divided by Current Liabilities

What is the Current Ratio?

Back to Board

Ratios - $300

Cost of Goods Sold divided by Inventory.

What is Inventory Turnover?

Back to Board

Ratios - $400

Sales divided by Accounts Receivable.

What is A/R Turnover?

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Ratios - $500

This ratio is 365 divided by A/R Turnover.

What is Average Days to Collect?

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Balance Sheet - $100

Prepaid Rent appears under this major section of the Balance Sheet.

What is the “Asset” section?

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Balance Sheet - $200

Allowance for Bad Debt appears under this major section of the Balance Sheet.

What are “Assets”?

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Balance Sheet $300

Warranty Obligations appears under this major section of the Balance Sheet.

What is the “Liabilities” section of the Balance Sheet?

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Balance Sheet - $400

Unearned Revenue appears under this major section of the Balance Sheet.

What is the “Liability” section of the Balance Sheet?

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Balance Sheet - $500

Unrealized Gain on Available for Sale Securities is reported under this major section of the Balance Sheet.

What is the “Equity” section of the Balance Sheet?

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Which Statement $100

Gross Margin appears on this statement.

What is the Income Statement?

Back to Board

Which Statement $200

Gain on Disposal of Equipment appears on this statement.

What is the Income Statement?

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Which Statement $300

Accumulated Depreciation appears on this statement.

What is the Balance Sheet?

Back to Board

Which Statement $400

Unrealized Gain on Trading Securities appears on this statement.

What is the Income Statement?

Back to Board

Which Statement $500

Wages Payable to Employees appears on this statement.

What is the Balance Sheet?

Back to Board

Daily Double Specify Your Wager!

Terminology ---

When a company sells on credit, it uses this account to set aside an amount in expectation that some or all of the receivable will eventually become uncollectible.

Terminology ---

Back to Board

When a company sells on credit, it uses this account to set aside an amount in expectation that some or all of the receivable will eventually become uncollectible.

What is “Allowance for Bad Debt”.