Depreciation
Name one method of depreciation
straight line, double declining balance, units of production
to the direct costs of producing the goods sold by a company
What are the components of the balance sheet?
Assets, liabilities and equity
Is accounts receivable a natural debit or credit balance
debit
In a t account, what side do the debits go on
left
What is the remaining value of a fully depreciated value called?
salvage value
What is the LIFO method?
uses the most recently purchased inventory first
What are the two methods of accounting?
one states with A one starts with C
Which of the following is true?
Accounts receivable are found in the current asset section of a balance sheet.
What would be the journal entry for purchasing $200 of supplies on credit?
Debit Supplies
Credit Accounts Payable
If an asset costs $10,000 and has a 5 year life and no salvage value, what is the depreciation per year using straight line depreciation
2000
What is the FIFO method
uses the oldest inventory first
What are the components of the income statement?
Revenues, expenses and net income
What is the name of the account we write off accounts receivable to that we don't think we will collect?
Bad debt expense
When we receive payment for services we did not preform. its a liability
If an assets costs $10,000 and has a $2000 salvage value and 5 year life, what is the annual depreciation using straight line
$1,600
What are 4 methods of accounting for COGS?
FIFO, LIFO, Weighted Average, Direct
Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of accounting?
Adjusting, closing, reversing?
Adjusting
What is the name of the reserve account we use for creating an allowance for accounts receivable we don't think we will collect
Allowance for doubtful accounts
What accounts are closed at the end of the accounting period?
temporary
An asset's useful life is the same as its physical life?
NO
How do you calculate gross profit?
Sales - COGS
Does the heading of a balance sheet indicate a period of time or a point in time?
Point in time
What is the journal entry to record an allowance for accounts receivable we don't think we will collect
Cr. Allowance for doubtful accounts
What is the name of the account we use when preparing closing entries? the "imaginary account?
income summary