BA211 Exam 1 Review

Assets

100

This is the most liquid asset account

Cash

200

If I run a sandwich shop and buy a pack of baby wipes, what asset should I debit?

Supplies

300

These 3 long-term assets make up an acronym we've learned in class

Plant, Property, Equipment (PP&E)

400

This account is known as a contra-asset

Accumulated Depreciation

500

If your business only provides services and not goods, you have no need for this account

Inventory

Liabilities

100

This account indicates a debt owed because the company doesn't own the building it operates in (not rent payable)

Lease or Mortgage Payable

200

This account indicates a debt owed to a supplier

Accounts Payable

300

This account indicates a debt owed to a bank

Notes Payable

400

This account indicates a debt owed to employees

Wages/Salaries Payable

500

This account is credited if a customer purchases a good that the company will provide later

Deferred Revenue

Owner's Equity

100

This account shows how much stock the company has sold

Common Stock

200

We would do this to find how much Owner's Equity is worth, given the amounts for Assets and Liabilities

Assets - Liabilities

300

Essentially "inventory expense"

Cost of Goods Sold (COGS)

400

Despite being under Owner's Equity, these 2 types of accounts increase when debited

Dividends and Expenses

500

Retained Earnings is comprised of this equation

Revenue - Expenses - Dividends

Something's Missing

100

This was bought __ ______ meaning actual money will be exchanged later

On Account/Credit

200

Cr. Prepaid Rent

Dr. Rent Expense

300

Dr. Deferred Revenue          $500

Cr. Revenue          $500

400

Cr. Supplies Expense

Dr. Retained Earnings

500

Dr. Depreciation Expense          $100

Cr. Accumulated Depreciation          $100

Vocab

100

These entries are used to close out temporary accounts at the end of a period

Closing Entries

200

You should write this helpful acronym on your test to help you differentiate between which accounts increase with debits vs credits

DEALOR (Dividends, Expenses, Assets, Liabilities, Owner's Equity, Revenue)

300

This acronym contains the 3 types of cash transactions as shown on the Statement of Cash Flows

OIF (Operating, Investing, Financing)

400

This financial statement is a "snapshot in time"

Balance Sheet

500

This acronym is the set of rules that publicly traded companies must follow under FASB and the SEC

GAAP (Generally accepted accounting principles)