Assets
Cash at Bank is usually a debit or credit?
Accounts Receivable
The formula
a) A = L - OE
b) L = A + OE
c) A = L x OE
d) A = L / OE
e) OE = A - L
f) A = L + OE
(f) & (e)
Joey starts a business with a $10 000 deposit into a bank account for the business.
What accounts have been affected and what credit / debit?
Debit Cash at Bank
Credit Capital - Joey
True or False?
If you're making profit (in other words, your revenues are greater than your expenses), your business is doing very well.
False.
True or False?
There are accountants for water, who account for all water used around a country.
This asset account is all of your money
Cash at bank/cash
Purchasing equipment on credit would debit / credit what?
Debit Equipment
Credit Accounts Payable
Taking out money from your business for personal reasons debits / credits which accounts?
Debit Capital (Credit Drawings)
Credit Cash at Bank
An accounting period is defined as...
The period of time over which revenues are compared with expenses in order to determine profit.
The Financial Reporting Handbook is a book that gives rules and regulations for all accountants in Australia. How many pages are in the book?
a) 4278
b) 2361
c) 1894
d) 3871
b) 2361.
And that's still not all.
When I buy supplies for cash what do you debit / credit?
Debit Supplies
Credit Cash at Bank
The definition of a liability is...
Present obligations of an entity to transfer economic resources to another entity to produce economic benefits
The definition of Owner's Equity is...
the residual interest an owner has in a business after liabilities are deducted from assets.
What are the headings required on a Balance Sheet?
Balance Sheet
For company: XYZ
As of: 30 June 2019
Assets
Current & Non Current Assets
Liabilities
Current & Non Current Liabilities
Owner's Equity
True or False.
Accountants are fun people.
If you said True: well done! Accountants are very fun indeed!
If you said False: I hope you have someone who can help you do your taxes.
The full definition of an asset is...
Present economic resources under the control of a business entity, with the potential to produce an inflow of economic benefits.
Brad paid a supplier cash of $400 from a previous credit invoice.
What accounts would be affected?
Debit Accounts Payable
Credit Cash at Bank
A = $15 000
L = $5 000
OE = ?
= $10 000
Name the Accounting Assumptions.
Period.
Entity.
Accrual Basis.
Going Concern.
True or False?
Anyone can be an accountant because it is easy.
Very False.
You haven't even scratched the surface.
Owner's Equity = $15 700
Current Liability = $8 954
Non-Current Liability = $3 361 (28 015)
Current Assets = $1 890
Non Current Assets = ??
$26 125
Dave has taken a loan of $300 000 with Bank DEF. The terms of the loan are as follows:
3% interest per year and regular repayments of $2000 per month.
What is the current liability accounts and their amounts?
Current Liability:
Interest Payable : $ 9 000
Loan-DEF Bank : $ 24 000
Po took home a business laptop worth $3 000 to use for personal reasons.
What accounts are affected?
Credit Computer (Non-Current Asset) by $3 000
Debit Capital (Owner's Equity) by $3 000
Name the Accounting Characteristics.
Understandability.
Relevance.
Faithful Representation.
Timeliness.
Verifiability.
Comparability.
Well you tell me!