Nice Assets
All long-term assets incur a cost of use except for this.
What is land
According to the Revenue Recognition Principle, revenue arises (is earned) when this happens.
What is when the company transfers promised goods or services to the customer?
Assets are listed on the balance sheet in this order
What is liquidity
In a t-account.
What is the right side.
A + L = SE
What is A = L + SE (or A - L = SE)
Unlike Revenues or Expenses which are closed out at the end of the period, Asset accounts are this.
What are permanent accounts
According to the Revenue Recognition Principle, Revenue arises (is earned) when this happens.
What is when the company transfers promised goods or services to customers.
The primary purpose of financial reporting is to provide information to these parties.
Whom are investors and creditors
In a purchase of Supplies on account.
What is Supplies Payable.
Dr Prepaid Insurance 100 Cr Insurance Expense 100
What is Cr Cash $100
The two categories of Assets found on the Balance Sheet.
What are Current Assets and Noncurrent Assets.
When cash will not be paid until after a cost is incurred to generate revenue, initially this type of account must be recorded.
What is a Payable account
The characteristic that means that the numbers and descriptions match what really existed or happened.
What is faithful representation?
When receiving Cash for services not yet performed.
What is Unearned Revenue.
Contributed Capital = Common Stock
What is Contributed Capital = Common Stock + Additional Paid-in Capital
Collecting $30,000 in Cash from customers for services performed in a prior period changes Assets by this much.
What is $0
The specific journal entry recording $300 in Depreciation.
What is Debit Depreciation Expense for $300, Credit Accumulated Depreciation for $300
Because of the matching principle, when a company records a sale of a product, it must also record this type of journal entry.
What is an entry recording the associated expense?
In a closing entry.
What are Expenses and potentially Retained Earnings. DAILY DOUBLE
Dr Equipment Depreciation Expense $200 Cr. Equipment $200
What is Cr. Accumulated Depreciation $200
Lending money to another company creates this.
What is a Note Receivable DAILY DOUBLE
The journal entry preceding Dr. Cash $50 Cr. Accounts Receivable $50
What is Dr. Accounts Receivable $50 Cr. Revenue $50
GAAP is an acronym for this.
What are Generally Accepted Accounting Principles
When at the end of the period: Beg Supplies = $100, Purchases during the year = $50, End Supplies = $125
What is Supplies $25
Retained Earnings = Revenues - Expenses - Dividends
What is Retained Earnings = Beginning Retained Earnings + Net Income - Dividends