Get Money, Don't Sleep
share two examples of a variable cost
raw materials
sales commission
define deferal
pre paid payment happening before service
Sent out a bill for $4,700
to Ajay Inc. for supplies
shipped during August.
What's credit/debit?
Accounts Receivable (A+)
Sales Revenue (R+)
what does an income statement do? be spefic.
measures performance (revenue and expenses)
An asset increased is a debit. What is it when the revenue decreases?
debit
define accural
payment happens AFTER service is provided
The supplies shipped to
Ajay Inc. cost $2,350
What's credit/debit?
Cost of Goods Sold (E+)
Inventory (A-)
how liquid you are
when do you debit cash? when do you credit it?
debit → coming in credit → going out
what is an expense ALWAYS called?
debit
define asset and share 3 examples
anything you own that adds value (equipment, land, inventory
The company received
$4,100 for rent of excess
space that was temporarily
leased out to a customer.
Core or non core revenue?
Cash (A+) [Oper]
Rental Revenue (R+)
Non-core revenue
what organization audits the accounting standards and monitor financial statments and audits.
PCAOB Public Compnay Accounting Oversight Board
expenses are ALWAYS _________.
debited
what is the 4 step accounting process?
close nominal accounts
audit repots
earnings annoucement
file 10k
define liabilities and share 2 examples
debt or obligation (accounts payable, unearned rev)
Paid bill for half the cost
of the computers and
equipment bought in #4
What type of acct activity is it?
Note Payable (L-)
Cash (A-) [Fin]
what are the main parts of statement of stockholders equity?
net incomes & dividends
T/F → Checks are the same as cash in accounting
TRUE
what is the accounting equation?
assets = liabilities + stockholders equity
define retained earnings
The retained earnings of a company encompass the income it has generated since its establishment, minus any dividends distributed to shareholders.
Received bill and paid
$720 for one year’s
insurance, effective Sep 1
Insurance Expense (E+)
Prepaid Insurance (A+)
Cash (A-) [Oper
what form does Expenses go on?