Depreciation
What is the easiest method to calculate yearly depreciations?
Straight-Line
What account is used to record transactions relating to buying merchandise?
Purchases
Which account is used for prepaid expenses?
AFAD
How do you record a cash-payment in advance to the debt collection office?
Acc. Rec. / Cash
Make an example for a tangible asset.
Machinery
What is cost of goods sold?
Expense for goods which has been sold (Balance of purchasing account)
Fin exp. / LFAD
Which account is used to estimate potential uncollectibals?
Depr. / PD intangible asset.
How do you record a cash discount given to customers?
Sales / Acc. Rec.
Which account is used for unearned revenue?
AFAD
How does bad debt expenses affect the net sales?
They decrease the net sales.
How do you calculate straight-line depreciations?
Price divided by the useful life.
How do you record a decrease in your inventory?
Purchases / Inventory
How do you dissolve accruals and deferrals?
Reversing them
What is a minus-asset account?
Works like a liability account but is shown on the asset side.
How do you record a loss on a sold vehicle?
EO exp. / vehicles
What does it mean if a company show higher costs of goods purchased than costs of goods sold for their inventory?
It increases.
In April we paid a insurance bill for the next 12 months, starting form the 1st of April. How many months are recorded in the AFAD account?
3
What is a journal entry to debit Bad debt expenses and credit the doubtful debt account?
An adjustment of the potential losses on your updated accounts receivable.