Worksheet
Review
Inventory Adjustment
Other Adjustments
Periodic/
Perpetual
Inventory
Systems
Other Issues and Items
100
The worksheet used to record end of period adjustments to certain general ledger accounts in preparation for creating the formal financial statements.
What is the 10 column worksheet?
100
The worksheet adjustments that are particular to a retail business using the periodic inventory system.
What are the (2) inventory adjustments?
100
The unearned revenue account used to record a transaction representing cash collected prior to sales or service performance is this type of account.
What is a liability account?
100
Under this inventory system the Cost of Goods Sold calculation appears in the body of the Income Statement.
What is the periodic inventory system?
100
This is adjusted when the records of inventory on hand differ from the actual physical count.
What is adjust the books ( of course) for what is actually there when the inventory is counted?
200
The first 2 columns on the worksheet contain account balances from this source.
What is the general ledger?
200
This is why the Inventory account balance as it appears in the trial balance section of the worksheet represents the Beginning Inventory balance.
What is because under the periodic inventory system all merchandise inventory purchases are recorded in the Purchases account and no changes are made to the Inventory account until worksheet preparation?
200
When adjusting the unearned revenue account for earned revenue this type of account is utilized.
What is a normal revenue account?
200
The general ledger account that only is utilized under the perpetual inventory system.
What is the cost of goods sold account?
200
This is when it is ok or unnecessary to post the adjusting journal entries prepared from the worksheet adjustments to the general ledger accounts.
What is never, never, never???!!! (J/E's are always posted).
300
These two adjustments are new to your accounting II class and were not part of the Accounting I worksheet adjustment process. ***Daily Double***
What are the adjustments for inventory and unearned revenue?
300
The 2 basic steps in recording the change in the Inventory account for worksheet preparation purposes.
What is simply 1) Remove the Beginning Inventory balance and 2) Replace it with the Ending Inventory balance?
300
Probably the critical point in properly calculating adjustments for Supplies, Prepaid Rent, Prepaid Insuance, etc. ***Daily Double***
What is being aware that the information provided may indicate used or unused supplies, rent, etc. and/or expired or unexpired insurance?
300
These two entries are required when a sale is made under the perpetual inventory system.
What are the 1) Sales entry and 2) the Cost of Goods Sold entry?
300
The frequency that a physical inventory count is performed under the periodic and/or perpetual inventory sysytem.
What is at least once per year?
400
This is the difference between the debit and credit columns of the Income Statement portion of the worksheet.
What is the Net Income or Loss for the period?
400
The reason that both the debit and credit amounts on the Income Summary line of the worksheet are carried across the worksheet columns. ***Daily Double***
What is to have the amount of the change in the Inventory account balance properly reflected in preparing Cost of Goods Sold and to properly reflect it in the Net Income (Loss) calculation in the Income Statement column of the worksheet?
400
The primary difference introduced in Accounting II as it relates to the depreciation adjustment
What is simply utilizing multiple accounts for specific types of depreciable assets and their related depreciation adjustments?
400
The Puchases and Freight-In accounts are only utilized under this inventory system.
What is the Periodic Inventory System?
400
The inventory system where the current general ledger inventory account balance should reflect the actual inventory on hand (assuming no errors). ***Daily Double***
What is the perpetual inventory system?
500
This can be prepared using relevant account balances in the Income Statement section of the worksheet.
What is the Cost of Goods Sold section of the multi-step Income Statement?
500
The accounts to be debited and credited in making the two inventory adjustments are the same under this circumstance.
What is always, always, always?
500
The term for establishing the ending inventory account balance in actual business practice.
What is a physical inventory count?
500
All entries related to inventory are recored directly to the Inventory account under this inventory system.
What is the Perpetual Inventory System?
500
This is where the current period's beginning inventory balance comes from.
What is from the prior periods ending inventory balance?
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