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ACC5610 Advanced Accounting, Budget Planning and Control 2025-2026 Exam with Correct and Verified Answered Questions (Score A)-Capella University
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Account A record that summarizes all the transactions pertaining to a single item in the accounting equation Ledger A group of accounts General ledger A ledger that contains all accounts needed to prepare financial statements Subsidary ledger a ledger that is summarized in a single general ledger account
Controlling account an account in a general ledger that summarizes all accounts in a subsidiary ledger File maintenance The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current Department accounting system an accounting system showing accounting information for two or more departments Merchandising business A business that purchases and sells goods Posting transferring information from a journal entry to a ledger account Debit memorandum a form prepared by the customer showing the price deduction taken by the customer for returns and allowances
a computer used to collect, store, and report all the information of a sales transaction Terminal summary The report that summarizes the cash and credit card sales of a point-of-sale terminal Wage The amount paid to an employee for every hour worked Salary A fixed amount of money paid to an employee for each pay period Payroll The total amount earned by all employees for a pay period Withholding allowance a deduction from total earnings for each person legally supported by a taxpayer, including the employee
Tax base The maximum amount of earnings on which a tax is calculated Payroll register An accounting form that summarizes the earnings, deductions, and net pay of all employees for one pay period Employee earnings record A business form used to record details of an employee's earnings and deductions Automatic check deposit Depositing payroll checks directly to a bank account Electronic Funds Transfer (EFT) a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents Fiscal period The length of time for which a business summarizes its financial information and reports its financial performance
A trial balance prepared before adjusting entries are posted Plant assets physical assets that will be used for a number of years in the operation of a business Depreciation expense the portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life Adjusted trial balance A trial balance prepared after adjusting entries are posted Tax bracket Each tax rate and taxable income amount on one line of a tax table Marginal tax rate The tax rate associated with a tax bracket
Work sheet A columnar accounting form used to summarize the general ledger information needed to prepare financial statements Responsibility accounting assigning control of revenues, costs, and expenses to a specific manager Direct expense An operating expense identifiable with and chargeable to the operation of a specific department Indirect expense An operating expense chargeable to overall business operations and not identifiable with a specific department Responsibility statements financial statements reporting revenue, costs, and direct expenses under a specific department's control Departmental margin
Statement of Stockholders' Equity a financial statement that shows changes in a corporation's ownership for a fiscal period Capital stock total shares of ownership in a corporation Retained earnings An amount earned by a corporation and not yet distributed to stockholders Dividends earnings distributed to stockholders Cash flow the cash receipts and cash payments of a company Statement of Cash Flows
A financial statement that summarizes the cash receipts and cash payments resulting from business activities during a period Operating Activities The cash receipts and payments necessary to operate a business on a day-to-day basis Investing activities Cash receipts and cash payments involving the sale or purchase of assets used to earn revenue over a period of time Financial activities Cash receipts and payments involving debt or equity transactions Closing enteries Journal enteries used to prepare temporary accounts for a new fiscal period Post-closing trial balance A trial balance prepared after the closing entries
a file of stock records for all merchandise on hand Inventory record A form used during a physical inventory to record information about each item of merchandise on hand First-in, first-out inventory costing method using the price of merchandise purchased first to calculate the cost of merchandise sold first Last in, first out inventory costing method using the price of merchandise purchased last to calculate the cost of merchandise sold first Weighted-average inventory costing method using the average cost of beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold Inflation the rate at which the price for goods and services increases over time
Deflation the rate at which the price for goods and services decreases over time Generally Accepted Accounting Principles (GAAP) The standards and rules that accountants follow while recording and reporting financial activities International Financial Reporting Standards (IFRS) A set of accounting standards being adopted across the world Market inventory costing method Using the lower of cost or market price to calculate the cost of the ending merchandise inventory Gross profit method of estimating inventory estimating inventory by using the previous year's percentage of gross profit on operations
Allowance method crediting the estimated value of uncollectible accounts to a contra account Book value the difference between an asset's account balance and its related contra account balance Aging of accounts receivable analyzing accounts receivable according to when they are due Accounts Recievable Turnover Ratio Net Sales/Average Accounts Receivable Days Sales in Accounts Receivable the average period of time to collect an account recievebale Current assets
cash and other assets expected to be exchanged for cash or consumed within a year Plant asset record an accounting form on which a business records information about each plant asset Real Property land and anything attached to it Personal property all property not classified as real property Assed value The value of an asset determined by tax authorities for the purpose of calculating taxes Millage rate The tax rate used to calculate property taxes
Units-of-production method of depreciation calculating estimated annual depreciation expense based on the amount of production expected from a plant asset Modified Accelerated Cost Recovery System a depreciation method with prescribed periods for nine classes of plant assets Depletion the decrease in the value of a plant asset because of the removal of a natural resource Debt financing obtaining capital by borrowing money for a period of time Promissory note a written and signed promise to pay a sum of money at a specified time Notes payable
promissory notes signed by a business and given to a creditor Date of note the day a note is issued Principal the original amount of a note Maturity date the date on which the principal of a note is due to be repaid Interest an amount paid for the use of money for a period of time Interest rate the percentage of the principal that is due for the use of the funds secured by a note Current liabilities
