Anything Goes
What is the expanded accounting equation?
Assets=Liabilities + Capital - Withdrawals +Revenues - Expenses
What is the Owner's Capital accounts' normal balance?
Credit
True or False:
Adjustments and closing entries are always dated the last day of the month.
True
True or False:
An asset is any resource that a business owns or controls.
True
Idaho is called the ________ state.
Gem
Name two things that appear on the balance sheet.
Assets, liabilities, owners equity
What statement does the revenue and expenses belong in?
Income Statement
Accounts whose balances at the end of an accounting period are not carried over to the next accounting period....
Temporary Account
Name two things that can be liabilities.
Accounts Payable and Salaries Payable.
This famous Indian was born in Idaho.
Sacagawea
Journal entries that are prepared to reset all temporary accounts to a zero balance an update capital to a new balance ...
Closing Journal Entries
What order do you complete the three financial statements in?
Income Statement, Statement of Owner's Equity, Balance Sheet
What is the last step in the accounting cycle and what does it do?
The Post-closing trial balance and it lists only the permanent accounts after closing and adjusting entries have been made to the ledger.
What is an example of an assets shift?
Purchasing prepaid rent with cash
or
Purchasing a vehicle with Cash
What is Idaho's State fruit?
Huckleberry
What is working capital?
Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.
When revenue totals more than expenses, the result is...
Net Income
What is the difference between a permanent and a temporary account?
A permanent account is an account that will not be closed like a cash account. A temporary account is an account that is only open for a period of time and then closed out at the end of the life cycle.
What is an example of a Contra-Asset?
Accumulated Depreciation
Idaho is the _______ growing state in the U.S.
A. 3rd B. 7th
C. 11th D. 1st
D. 1st
What accounts have a normal balance of Debit and what have the normal balance of Credit
On the Normal Balance the debit side has Assets, Withdrawals and Expenses and on the credit side is Liabilities, Capital and Revenue.
When closing an expense, what do you debit, and what do you credit?
You debit the income summary and then credit the expenses
How many phases are there in the accounting life cycle and what are each of them in order?
9 Phases: Each phase is as follows: Identifying transactions, recording transactions, posting the transactions to the ledger, creating the trial balance, analyze the worksheet, adjusted journal entries, create financial statements, and close your books.
Which of the below is a true statement about Liabilities:
A - Liabilities are closed to the Income Statement at the end of each month
B - Salaries Payable is not a liability, it is an expense.
C - Liabilities appear on the Balance Sheet
D - Only service based businesses can have liabilities, merchandise based businesses do not have liabilities
C - Liabilities appear on the Balance Sheet
Idaho is known as the _______ capital of the world. (Hint: It is grown here, but it is not potatoes)
Lentil