The Theories of Accounting
Relationship between assets, liabilities and Owner's Equity?
ASSETS = LIABILITIES + OWNER'S EQUITY
Relationship between Revenue, Expense and Net Income?
Revenue - Expense = Net Income/loss
What is the credit accounts for the late invoices expense?
Accounts Payable
What does Balance Sheet contain?
Assets, Liabilities and Owners Equity
What is the use of the number on the top of the Balance Column Account?
Fill in the P.R. Column of the related accounts.
Revenue is a Decreanse in equity resulting from the sale of goods or servises. True/False
False
Revenue : 1500, Car Expense: 400,
Wages Expense:600 What is Net Income/loss?
1500-400-600= 500 Net Income
Jason's car bought on Dec 31, 2007 was 50000 worth, the salvage value is 10000 with life in 4 years using straight line method. What the Depreciation Expense on Dec 31, 2009?
(50000-10000)/4=10000
Where to put HST Recoverable and HST Receivable in the Balance Sheet?
Liabilities
How to decide whether it is Debit or Credit in Balance Column Accounts？
According to the Balance
+ Dr
- Cr
accounting is a system of dealing with financial data that provides information for decision making. True / False
True
If it is Net loss, how would Google Sheet show correctly?
Bracket outside the number according the Accounting Standard
Accrue Definition
Accrue means to grow or accumulate over time.
How to write a title of a Balance Sheet?
1st line: Company name 2nd line: Balance Sheet 3rd line: Date of Balance Sheet
What are the names of the three columns in the Balance Columns Account?
Debit Credit Balance
The company can change the value of equipments and supplies according to the market value. True / False
True
According to the Revaluation Model
The boss uses the company's money to take the employees out to play, is this considered an expense?
No, It is consider a drawing
Frank's Equipment bought on July 1, 2012 worth 2500, the salvage value is 100 with the life in 2 years, using straight line method. Calculate the total Depreciation expense until Dec 31, 2013.
2012: (2500-100) / 2/12*6=600 2013:(2500-100)/2=1200 1200+600= 1800
Who has a claim on assets?
Can be multiple people
Creditors and Owners
What should be filled in P.R (Posting reference) in the Balance Column Account?
Journal Page Numbers
What is Business Transiaction?
Events that cause the financial position of a Business to change.
A company had worth 2500 supplies on Jan 1, 2016. They bought 3520 Supplies during the year, but lost 500 Supplies because of the thief. They earned 5000 in Revenue in 2016 and had 1000 supplies left, calculating the Net Income/Loss on Dec 31, 2016.
5000-(2500+3520-1000)=(20) Net Loss
Ada's Truck bought on January 1, 1990 worth 8000 with a depreciation rate of 10% calculates the Depreciation expense on Dec 31, 1991 using declining balance method.
720
Make a Sequence for the following assets.
Account Receivable Bank Car Accumulated Depreciation-Car Land Supplies
(1)Bank (2)Account Receivable (3)Supplies (4) Car (5) Accumulated Depreciation-Car (6) Land
Opening an account means preparing an account and placing it in its proper placd in the ledger.
true / False
True