4 2016, questions and answers Chapter the Accounting Cycle Student: 1 After analyzing

which of the following account groups are temporary accounts?

The source documents for the Survey data are passenger tickets. These data are collected from the “lifted” flight coupons of tickets (a portion of a multi-part ticket booklet of three[1]
or more coupons, including one for each stage of the passenger’s trip itinerary which is lifted by the carrier as the passenger boards a particular flight segment). Revenue aircraft miles flown are computed in accordance with the airport pairs between which service is actually performed; miles are generated from the data for scheduled aircraft departures (Code 520) times the interairport distances (Code 501). Ton-miles are computed by multiplying the revenue aircraft miles flown (410) on each flight stage by the number of tons transported on that stage. (a) Within each of the service classifications prescribed in section 19–4, data shall be reported as applicable to specified air transport traffic and capacity elements. Record here income taxes allocable to items of income included in profit and loss account 96 Extraordinary Items and income tax assessments that do not constitute ordinary adjustments of a recurrent nature.

What are 3 examples of temporary accounts?

Examples of temporary accounts are revenue accounts, expense accounts (such as the cost of goods sold, compensation expense, and supplies expense accounts), gain and loss accounts (such as the loss on assets sold account), and the income summary account.

Record here revenue from the transportation by air of mail other than United States mail. (a) Record here revenue from the transportation by air of both United States and foreign mail. (ii) Operating expenses shall be subclassified in terms of functional activities as provided in sections 10 and 11. (ii) Operating revenues shall be subclassified in terms of functional activities as provided in section 9. (b) This account shall not be charged with dividends on treasury stock. If a dividend is not payable in cash, the values entered in this account shall be completely described.

1 Associated companies—gross revenues.

(a) The accounting provisions contained in this part are based on generally accepted accounting principles (GAAP). A publication containing fares and rates applicable to the transportation of persons or cargo and rules relating to or affecting such fares or rates of transportation, filed with the Department of Transportation. Transport service established for the carriage of traffic other than passengers. The period between the date of installation of property or equipment and its date of retirement.

which of the following account groups are temporary accounts?

Yet, many organizations ignore this foundational concept and limp along with unmet expectations. Chart of accounts functionality is probably the most important attribute of accounting software and financial reporting. Entry level software with robust COA functionality can be made to work for many years.

1 Maintenance Buildings and Improvements.

Such costs shall be charged to appropriate property and equipment accounts. (a) This function shall include expenses incurred directly in the in-flight operation of aircraft and expenses attaching to the holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status. This account https://www.bookstime.com/articles/temporary-accounts shall also include balances of contributions to the business enterprise of individual proprietors or partners. (d) Subaccounts to this account shall be established to record balances pertaining to passenger and cargo transportation sold, respectively, and separately to sales in scheduled and non-scheduled services.

which of the following account groups are temporary accounts?

(d) Data reported in the “12 Months-to-Date” column shall represent for each item the sum of amounts reported in the “Quarter” column for the current and next previous three quarters. (1) “Cash and Equivalents” shall include cash on hand and on deposit, U.S. Government securities, and other temporary cash investments.

Maintenance Burden.

For example, at the end of the accounting year, a total expense amount of $5,000 was recorded. The amount is transferred to the income summary by crediting the expense account, consequently zeroing the balance, and an equal amount is recorded as a debit to the income summary account. Temporary accounts are those accounts whose balances are closed or zeroed at the end of each accounting period. Say you close your temporary accounts at the end of each fiscal year.

  • The granting of such waivers will depend upon the availability of resources for the Department to assume this additional burden, which can only be determined on a case by case basis, after evaluating each carrier’s need.
  • A count of the number of passengers getting off and tons of cargo unloaded from an aircraft.
  • Any questions about airport or terminus codes should be addressed to the Director, Office of Airline Information.
  • Hours per aircraft per day—carrier’s equipment, revenue.
  • (b) Both the criteria for establishing air carrier groupings and the assignment of each air carrier to a specific group of carriers will be reviewed periodically by the Director, Office of Airline Information, to assure the maintenance of appropriate standards for the grouping of carriers.
  • This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons.

Publicly-owned companies must adhere to generally accepted accounting principles and reporting procedures. Following these principles and practices, financial statements must be generated with specific line items that create transparency for interested parties. One of these statements is the balance sheet, which lists a company’s https://www.bookstime.com/ assets, liabilities, and shareholders‘ equity. The Current Assets account is a balance sheet line item listed under the Assets section, which accounts for all company-owned assets that can be converted to cash within one year. Assets whose value is recorded in the Current Assets account are considered current assets.

1 Amortization of discount and expense on debt.

(3) “Other Current Assets” shall contain all other current assets not provided for in the above classifications. This account shall include, but is not limited to, short-term prepayments, expendable spare parts, supplies and other inventories of flight equipment replacement parts that are usually replaced rather than repaired, and materials and supplies held in stock, such as fuel and oil, expendable tools, office supplies and food service supplies. Spare parts may be reduced by an allowance for obsolescence to provide for losses in value. Such explanations related to financial position or financial results shall be made on BTS Form 41 Schedule P–2. Changes in methods for computing or reporting traffic and capacity statistics shall be identified and explained on a separate sheet attached to the first report affected.

which of the following account groups are temporary accounts?

To assign an item or group of items of investment, revenue, or cost to an object, activity, process, or operation, in accordance with cost responsibilities, benefits received, or other measure of apportionment. Any contrivance now known or hereafter invented, used or designed for navigation of or flight in the air. For example, Meals Expense might be a standalone account or it might be spread across the categories the meals relate to, such as Marketing, Conferences, or Travel. These are familiar sentiments to anyone who has sat through a few financial meetings.

Group I Air Carriers

(a) Record here the cost of fuels and oils issued from stocks of the air carrier, or delivery directly by others, to aircraft for use in flight operations. Adjustments of inventories of aircraft fuel and oil shall also be entered in this account. The cost of fuels and oils used in repairs and maintenance services and nonrefundable fuel and oil taxes shall not be included in this account but in profit and loss accounts 49 Shop and Servicing Supplies and 69 Taxes—Other than Payroll, respectively. This subfunction shall include expenses incident to direct sales solicitation, documenting sales, controlling and arranging or confirming aircraft space sold, and in developing tariffs and schedules for publication. It shall also include expenses attributable to the operation of city traffic offices. Expenses incurred in stimulating traffic and promoting the air carrier or air transportation generally shall not be included in this subfunction but in subfunction 6600 Advertising and Publicity.

Why are they called temporary accounts?

Temporary accounts are known as temporary accounts because they begin a new fiscal year with a zero balance, and the balances are transferred to another account. The temporary accounts are closed to avoid mixing up the balance of one accounting period with the balance of the following accounting period.

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