Statements and Reports
This statement is were you would find Land and other asset accounts.
What is the Balance Sheet?
Using this equation I know that if I have assets of 500,000 and Liabilities of 200,000, then my Equity has to be 300,000.
What is the Accounting Equation?
When recording the purchase of $500 worth of supplies on account, the second line of the entry will be a ____ to Accounts Payable.
What is Credit?
This assumption requires transactions and events to be show in monetary units.
What is the Monetary Unit Assumption?
Opportunity, Pressure and Rationalization are the components of this accounting term.
What is the fraud triangle?
The statement that you would find Wages Expense and Sales.
What is the Income Statement?
This is the equation to calculate Net income (loss).
What is Total Revenues - Total Expenses?
Entries made at the end of the year to record expenses and revenue not yet recorded. These can effect asset and liability accounts.
What are adjusting entries?
This principle requires expenses incurred to generate revenue be reported in the same period as that revenue.
What is the Expense recognition (Matching) principle?
This "basis" for recording accounting transactions, records revenue when cash is received and expenses when cash is spent.
What is Cash Basis Accounting?
Created at the end of a month, year or at any point it can be useful. This report is a list of all accounts and their balances organized into two rows for debit balances and credit balances.
What is a Trial Balance?
What is $20?
The journal entry needed to close the withdrawals account.
What is a debit to Owner's capital and a credit to Owner's withdrawals?
Under this assumption the financial records for a business should not be the same as those for the owner(s).
What is the Business Entity Assumption?
The list of special journals used by a company to record specialized entries.
What are the Cash receipts Journal, the Purchases Journal, the Cash Payments Journal, and the Sales Journal?
This statement requires the company's net income (loss), withdrawals by the owner and any new investments made by the owner.
What is the statement of owner's equity?
The four methods used to calculate Cost of goods sold and ending inventory.
What are FIFO, LIFO, Weighted Average and Specific Identification?
A journal entry is made to debit Petty Cash and credit cash for this reason.
What is "to establish a petty cash"?
Financial reporting reflects the assumption that the business will continue to operate.
What is Going Concern Assumption?
This accounting term is defined as procedures set in place to protect assets.
What is Internal Controls?
This statement shows the inflows and outflows of cash through the business time period.
What is the Statement of Cash Flows?
One of three methods used to estimate bad debt.
What is Percent of Sales Method, Percent of Accounts Receivable Method and Aging of Receivables Method?
These entries will be required as entries on the General Journal after the completion of the bank reconciliation.
What are Bank fees, NSF checks and Book Errors?
A company must detail all information that may impact a decision by its users, this is defined in an accounting assumption.
What is the Full Disclosure Principle?
What is Perpetual or Periodic?