What do you mean?
Occurs when revenue has been earned or an expense has been incurred but hasn't been recorded
What is an accrual?
The normal balance for unearned revenue
What is credit?
A type of entry made at the end of the accounting period to bring accounts up to date
What is an adjusting entry?
Analysis that compares items on financial statements between multiple years
What is horizontal analysis?
True/False
Journal entries are always correct if debits and credits are equal.
What is false?
The principle describing that expenses incurred in generating revenue must be reported in the same period as related revenues
What is the matching (expense recognition) principle?
To record expenses, the expense account must be _____.
What is debited?
When supplies on record is $1200, while supplies on hand is $800, the amount of supplies expense to be recorded is ____.
What is $400?
The formula for the ratio of liabilities to stockholders' equity
What is Total Liabilities/Total Stockholders' (Owner's) Equity?
An error has occurred when debits and credits on a trial balance _____.
What is "do not equal"?
The difference between the cost of an asset and the accumulated depreciation of that asset
What is the net book value (book value of an asset)?
When prepaid expenses expire, they are recorded as a _____ to the prepaid expense account.
What is credit?
The general accounts recorded when expenses are accrued
What are an expense account and a liability account?
The amount of owner's equity when total liabilities is $23,900 and total assets consists of $30,500 Cash and $4,000 Accounts Receivable
What is $10,600?
A test to determine if the total debits and total credits amount to the same value
What is a trial balance?
An account that deducts from a related asset account on the balance sheet (i.e. accumulated depreciation)
What is a contra (asset) account?
When a fixed asset depreciates, ____ is the account that is credited.
What is accumulated depreciation?
The account debited when rent is paid in advance for only the current month
What is rent expense?
In a vertical analysis of the balance sheet, the percentage of Accounts Payable is based on the total of ____.
What is liabilities and owner's equity?
The type of trial balance prepared immediately after posting to the ledger
What is an unadjusted trial balance?
Type of accounting where revenues and expenses are reported on the income statement in the period in which a service has been performed or a product has been delivered
What is the accrual basis of accounting?
Debiting a revenue account _____ owner's equity.
What is decreases (reduces)?
A machinery is expected to have a usefulness of 15 years. If the machine was purchased for $450, this is the journal entry when depreciation is recorded at the end of each year.
What is Dr. Depreciation expense $30, Cr. Accumulated depreciation--machinery $30?
Income Statement
Fees Earned $500 (a)%
Wages Expense $175 (b)%
Rent Expense $250 (c)%
Net Income $75 (d)%
In a vertical analysis, (a) is ____.
What is 100%?
A likely adjusting entry for the following is ____.
Adjusted Trial Balance
Cash $2000
Land $1200
Wages Payable ($1000)
Capital ($500)
Sales Revenue ($2700)
Wages Expense $1000
$4200 ($4200)
What is wages expense and wages payable for $1000?