Chapter 1
This foundational accounting equation demonstrates that a business's resources must equal its claims to those resources.
What is Assets = Liabilities + Stockholders' Equity?
When a company purchases land using cash, this is the overall effect on total assets.
What is zero effect (or no net change)?
This key factor represents the core difference between accrual-basis and cash-basis accounting.
What is timing (when revenues and expenses are recorded)?
A company issues common stock to investors for $200,000 cash.
What are Debit Cash and Credit Common Stock?
What is my major?
What is accounting?
Unlike sole proprietorships and partnerships, this type of business organization is legally separate from its owners, granting stockholders limited liability.
What is a corporation?
When a customer pays cash in advance for services to be rendered in the future, the company records a credit to this type of account.
What is Deferred Revenue (a liability account)?
An adjusting entry for a prepaid expense always includes a debit to an expense account and a credit to this type of account.
What is an asset account?
A company purchases $23,000 of office supplies on account.
What are Debit Supplies and Credit Accounts Payable?
What are the times and locations of my SI sessions
What are:
**Tuesday:** 4:00 PM - 5:00 PM
**Location:** ALC (Academic Learning Center) Room 4102 (Fourth Floor)
**Thursday:** 4:00 PM - 5:00 PM
**Location:** BB (Burrus Building) Room 384 (Third Floor)
This financial statement reports a company's revenues and expenses over a specific period to calculate net income or net loss.
What is the Income Statement?
According to the "DEALOR" memory aid, these three specific account types are increased with a debit.
What are Dividends, Expenses, and Assets?
When a customer pays $6,000 in advance for services, the company credits Deferred Revenue. Once $2,000 of services are completed, the adjusting entry debits Deferred Revenue and credits this account.
What is Service Revenue?
A company provides $20,000 of services to customers on account.
What are Debit Accounts Receivable and Credit Service Revenue?
Where is Professor Quosigk originally from?
What is Germany?
This line item represents cash payments made to stockholders, but common student mistakes treat it as an expense on the income statement.
What are dividends?
When a company performs services on account, this asset account is debited to show the customer's promise to pay later.
What is Accounts Receivable?
When a company issues common stock to investors for $200,000 cash, this account is debited
What is Cash?
The company earns $2,000 of revenue by performing services for customers who previously paid in advance.
What are Debit Deferred Revenue and Credit Service Revenue?
What does the SI in "SI Leader" stand for?
What is Supplemental Instruction?
Transactions involving borrowing money from a bank or issuing common stock to investors are classified as this type of business activity.
What are financing activities?
If a T-account for Cash shows total debits of $12,000 and total credits of $8,500, its ending balance is recorded on this side
What is the debit side (for $3,500)?
A company pays $60,000 for one year of rent in advance on December 1. On December 31, the adjusting journal entry to record one month of expired rent includes a $5,000 credit to this account.
What is Prepaid Rent?
The closing entry required to close $72,000 of Service Revenue at the end of the year.
What are Debit Service Revenue and Credit Retained Earnings?
Have I learned something new? (Think carefully)
What is No?