What account am I?
A summary device that is shaped like a T with debits posted on the left and credits posted on the right.
What is a T-Account.
What are the three sections of the Balance Sheet?
What are
Assets, Liabilities, and Equity
Warriors in Accounting and Business paid $28,000 to suppliers for equipment that was bought on account.
Debit- Accounts Payable $28,000
Credit - Cash $28,000
T/F?
The direct method is accepted under GAAP and the indirect method is not accepted under GAAP in the United States
What is False.
_____ is an accounting principle for companies to report expenses at the same time as revenues.
What is the Matching Principle
An asset account representing the money collected and used for payments
What is Cash
The balance sheet summarizes the financial position of a company at a ________.
Hint:
Think Time Frame
What is
Specific point in time
The Mandalorian borrows $50,000 from the bank, signing a note due in two years.
Debit- Cash 50,000
Credit- Notes Payable 50,000
What are the Indirect and Direct Method
What does 2/10 net 30 mean?
The buyer will receive a 2% discount on the net invoice if they pay within 10 days.
Otherwise, the full invoice is due within 30 days.
An account that is presented on the balance sheet and represents the expenses paid in advance.
What is Prepaid Expenses
Name 5 asset accounts under the Balance Sheet.
What are
Cash, A/R, Inventory, Prepaid Expenses, long term investments, intangibles assets (Goodwill), PP&E (Fixed Assets), short term investments, Other assets, Other Receivables, Supplies
Harry Potter paid $50 for his subscription to the dark magic magazine.
Debit- Prepaid Expense $50
Credit- Cash $50
______ is the money that the company has available to repay it creditors or pay its dividends and interest to investors.
What is free cash flow (FCF)
Can you name FOUR users of the financial statements?
Hint:
They use financial statements to satisfy some of their information needs.
What are the
Government, Employees, Investors/Shareholders, Creditors/Lendors, Vendors, Competitors, General Public, Rating Agency, Customers, and Management.
The name of the account used to record uncollectible receivables. This account is an expense and will reduce income.
What is Bad Debt Expense
Name 3 equity accounts under the Balance Sheet.
What are
Common stock, preferred stock, owners capital, owners distribution, additional paid-in capital, retained earnings, other comprehensive income (OCI), treasury stock, and dividends,
Baby Yoda sold his land purchased for $105,000 and his book value was $120,000.
Debit- Cash 105,000
Debit- Loss on sale of land 15,000
Credit- Land 120,000
On the balance sheet, inventory accounted for $221,000 in 2022 and $78,000 in 2023.
Using the indirect Method, how would this be presented under the operating section of the cash flow statement?
As a decrease/cash outflow of $143,000 for inventory under the operating activities section.
__________are changes to journal entries you’ve already recorded.
Hint:
They are made at the end of an accounting period to recognize an income or expense in the period that it is incurred
What is
Adjusting entries
This account represents the reduction of value of gross Accounts Receivables. It is a contra-asset and increases when it is credited.
What is Allowance for Doubtful Accounts.
Bright Ideas Co. starts a new accounting period with $200,000 in retained earnings. During the accounting period, the company earns $50,000 in net income. After the accounting period ends, the company's board of directors decides to pay out $20,000 in dividends to shareholders. What is the ending balance of retained earnings?
$200,000 + $50,000 - $20,000 = $230,000.
Pizza Planet issued 10,000 shares of $10 par value common stock for $18 cash.
Debit- Cash 180,000
Credit- Common Stock 100,000
Credit - Additional paid in Capital 180,000
_________ is a non-cash expense, which means that it needs to be added back to the cash flow statement in the operating activities section.
What is Depreciation
What are the 3 types of inventory in a manufacturing company?
What are
Raw Materials, Work In Progress (WIP), Manufacturing Overhead