Depreciation
Adjusting
Random
Closing
Terminology
100

The expected value of an asset at the end of its useful life

What is residual value/salvage value

100
An asset created when a business makes advance payments of future expenses
What is deferred expense
100

This assumes the entity will remain open for the foreseeable future

What is the going concern assumption

100
Accounts that are not closed at the end of the period
What are permanent accounts
100
Transferring data from the journal to the ledger
What is posting
200

How straight-line depreciation is calculated

What is (cost-residual value)/useful life

200
The expense created when businesses spread the allocation of an asset's cost over its useful life
What is deprectiation
200

Which account groups have a normal credit balance

What are liabilities and equity

200

Zeros all revenue accounts and all expense accounts in order to measure the period's net income

What is the closing process

200

A listing of all accounts in order

What is chart of accounts

300

The sum of all the depreciation expense recorded to date for an asset

What is accumulated depreciation

300
Office Supplies Beginning of month $3,000 End of month $1,900 What is the adjusting entry
What is debit supplies expense and credit supplies for $1,100
300

This type of accounting is required by GAAP

What is accrual based accounting

300
Which financial statement is prepared last
What is balance sheet
300

This type of accounting only records transactions when cash goes out or comes in and is not approved by GAAP

What is cash based accounting

400

Cost $18,000 Residual Value $0 Useful life 5 years What is the monthly depreciation expense

What is $300

400
Salaries are paid $2,000 every Friday. This month ends on a Wednesday. What is the adjusting entry?
What is debit salaries expense, credit salaries payable $1,200
400

This principle states that assets should be recorded at the amount paid and not the current market value

What is the cost principle or the historical cost principle

400
Total service revenues for the period are $20,000 What is the closing journal entry?
What is debit service revenues and credit income summary
400

The entries that transfer revenue, expenses, and Owner, withdrawals to the Owner,capital account

What are closing entries

500
Cost $65,000 Residual value $5,000 Useful life 20 years What is the journal entry to record monthly depreciation
What is debit depreciation expense and credit accumulated depreciation for $250
500
The company purchased a two-year insurance policy on April 1 for $5700. What amount should be in December's adjusting entry?
What is 237.50
500

Unearned revenue is this type of account

What is a liability

500
These two documents prepared at the end of the period only list permanent accounts
What is balance sheet and post-closing trial balance
500

A measure of how quickly an item can be converted to cash

What is liquidity

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