Asset, Liability, or SE?
Cash
Asset
Receiving cash in exchange for goods
Dr Cash
Cr Revenue
Money that the company owes for goods or services they received (Typically due within one year)
Accounts payable
This statement ends with your "Net Income"
Income statement
What is the accounting equation?
Assets = Liabilities + Equity
Land
Asset
A company paid cash to have a cleaning service clean thier office
Dr Cleaning Expense (Or other basic expense acct)
Cr Cash
Goods that the company is holding to be sold in the near future
Inventory
This statement includes "Cash used or provided by operating activities"
Statement of Cash flows
What accounts increase when an owner invests cash into a company?
Cash and Equity
Accounts Payable
Liability
Selling goods on credit
Dr Accounts Receivable
Cr Revenue
When an asset's book value is slowly lowered to account for normal "wear and tear"
Depreciation
This statement shows the company's assets and liabilities
Balance Sheet
What is used to identify negative numbers on accounting statements?
(Parentheses)
Common Stock
Stockholders Equity
Receiving cash by issuing common stock
Cr Common Stock
Payments made to stockholders as an incentive for holding shares
Dividends
This statement is used to correct discrepancies between bank statements and the current books
Bank reconciliation statement
What are the guidelines for financial accounting referred to as?
GAAP (Generally Accepted Accounting Principles)
Unearned Revenue
Liability
A company's delivery van is depreciated for 1 year on its normal schedule
Dr Depreciation Expense
Cr Accumulated Depreciation
When after accounting for all expenses, the company had more expenses than revenue for the current year
Net loss
"Notes payable" is found on this statement
Balance sheet
What type of physical asset CANNOT be depreciated under GAAP?
Land