acc exam 3

what account has a normal balance side of debit

dividends

what is not classified as an intangible asset on the balance sheet

stock investments

what stakeholder has the highest priority for receiving dividends

preferred stockholders

what adjustment is deducted from net income in computing net cash provided by operating activities using the indirect method

an increase in prepaid expenses

what describes the cost recorded for the purchase of land used in operations

the cost includes the cash purchase price, the legal fees associated with the purchase, and the cost associated with preparing the land for its intended use

what are the debited and credited accounts to record amortization expense for a patent

debit: amortization expense, and credit: patents

what best describes the cost initially recorded for intangible assets

intangible assets are recorded at the cost for acquiring the asset

what directly results in goodwill being recorded

when a company purchases another business for more than its book value

employees receive paychecks for an amount equal to

net pay

what is paid by both the employer and the employee

FICA tax

what is a non-current liability

bonds payable

a journal entry to redeem bonds includes which of the following

a credit to cash

what is true of corporations

corporations provide for limited liability for the owners

what are the debited and credited accounts to record a company reacquiring its own stock

debit: treasury stock, and credit: cash

which party serves as an intermediary between the investors and the issuing firm when stock is issues

investment bankers

what is an example of paid-in-capital

common stock

what is required to pay a cash dividend

retained earnings

what is a common reason that a company initiates a stock split

to lower the price of the stock for marketability

which section of the statement of cash flows includes cash received and paid for the activities with customers, suppliers, and employees

operating activities

which section of the statement of cash flows includes cash received and paid from buying and selling long term assets

investing activities

which section of the statement of cash flows includes cash received and paid from exchanges with lenders and stockholders

financing activities

paid in capital vs retained earnings

paid is given to the corporation, retained has been earned

liabilities

obligation or debt that a company owes to an external party

depreciation expense vs accumulated depreciation

depreciation is the operating expense that shows how much an assets value was used, the accumulated part is tracking the total depreciation of an asset since it was purchased