COB 241

1
COB 241

• November 18, 2002

2
Accounting Jeopardy

• November 18, 2002

3
Todays Categories

• Cash
• Merchandising Organizations
• Accounting Terminology
• Financial Ratios
• The Balance Sheet
• Which Statement?

4
Cash
FinancialRatios
BalanceSheet
WhichStatemt?
ActgTerms
MdsingOrgs
100
100
100
100
100
100
200
200
200
200
200
200
300
300
300
300
300
300
400
400
400
400
400
400
500
500
500
500
500
500
5
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
6
Cash - 200
A credit to cash indicates the cash balance has
done this.
What is a Decrease in the cash balance?
Back to Board
7
Cash - 300
When you pay an expense, you record this half of
an entry to the cash account.
What is Credit?
Back to Board
8
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
9
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?
Back to Board
10
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
11
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
12
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
13
Merchandising 400
When you sell merchandise, you credit this
account for the amount charged the customer.
What is Revenue?
Back to Board
14
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
15
Terminology 100
A reduction in assets, caused by the normal
operation of the business, is usually this.
What is an Expense?
Back to Board
16
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
17
Terminology 300
DAILY DOUBLE!!!
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Terminology 400
The most liquid asset of all.
What is Cash?
Back to Board
19
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
20
Ratios - 100
Net Income divided by Number of Shares
Outstanding.
What is Earnings per Share (or EPS)?
Back to Board
21
Ratios - 200
Current Assets divided by Current Liabilities
What is the Current Ratio?
Back to Board
22
Ratios - 300
Cost of Goods Sold divided by Inventory.
What is Inventory Turnover?
Back to Board
23
Ratios - 400
Sales divided by Accounts Receivable.
What is A/R Turnover?
Back to Board
24
Ratios - 500
This ratio is 365 divided by A/R Turnover.
What is Average Days to Collect?
Back to Board
25
Balance Sheet - 100
Prepaid Rent appears under this major section of
the Balance Sheet.
What is the Asset section?
Back to Board
26
Balance Sheet - 200
Allowance for Bad Debt appears under this major
section of the Balance Sheet.
What are Assets?
Back to Board
27
Balance Sheet 300
Warranty Obligations appears under this major
section of the Balance Sheet.
What is the Liabilities section of the Balance
Sheet?
Back to Board
28
Balance Sheet - 400
Unearned Revenue appears under this major section
of the Balance Sheet.
What is the Liability section of the Balance
Sheet?
Back to Board
29
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?
Back to Board
30
Which Statement 100
Gross Margin appears on this statement.
What is the Income Statement?
Back to Board
31
Which Statement 200
Gain on Disposal of Equipment appears on this
statement.
What is the Income Statement?
Back to Board
32
Which Statement 300
Accumulated Depreciation appears on this
statement.
What is the Balance Sheet?
Back to Board
33
Which Statement 400
Unrealized Gain on Trading Securities appears on
this statement.
What is the Income Statement?
Back to Board
34
Which Statement 500
Wages Payable to Employees appears on this
statement.
What is the Balance Sheet?
Back to Board
35
Daily Double

• Specify Your Wager!

36
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.
37
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.
What is Allowance for Bad Debt.
Back to Board