Adjusting/Closing Entries
Posting
Vocab
The Accounting Cycle
Financial Statements
100
How do prepaid expenses affect debit and credit?
Debit Expenses Credit Assests
100
What sort of document can be prepared from a trial balance?
Income statement
100
Name the temporary accounts.
All revenue accounts All expense accounts Divedends
100
a ledger that contains a;ll accounts needed to prepare financial statements.
What is a general ledger.
100
Something that benefits your business.
What is an asset?
200
Which accounts are over/understated before the accrued expenses adjustment?
Expenses understated Liabilities understated
200
When should a company record revenue?
The moment it is earned
200
A form recording transactions in chronological order.
What is a journal?
200
The name given to an account.
What is account title.
200
Something that your business has to pay to.
What is a liability?
300
What's the reason for adjustment on interest, rent or salaries?
Expenses have been incurred but not yet paid in cash or recorded. This means that expenses and liabilities before the adjustment would be understated.
300
When should expenses be recorded?
Expenses always follow revenues. Record the expense when you record the revenue.
300
A business from which merchandise is purchased or supplies or other assets are bought.
What is a Vendor?
300
Writing an account title and number on the heading of an account.
What is opening an account.
300
A liability.
What is accounts payable, expenses, etc.
400
Four types of basic adjusting entries.
Prepaid expenses Unearned revenues Accrued revenues Accrued expenses
400
write the vendors name.
What is the first step in posting?
400
A small amount of cash left for small purchases.
What is petty cash
400
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
What is file maintenance.
400
a columnarr accounting form used to summarize the general ledger information needed to prepare financial statements.
What is a worksheet?
500
Under which two types of adjustments are revenues understated?
Unearned revenues Accrued revenues
500
1) Write the date 2) Write the journal number 3) Write the amount 4) Add the amount in the credit column 5) write the vendor number
What are the steps of posting an entry with a credit?
500
What is the fiscal period?
The length of time for which a business summarizes and reports financial information.
500
First five steps of the accounting cycle.
Analyze business transactions Journalize the transactions Post to ledger accounts Prepare a trial balance Journalize and post adj. entries: Deferrals/Accruals Prepare and adjusted trial balance Prepare financial statements: Income, RE, Balance Journalize and post closing enteries Prepare a post-closing trial balance
500
a group of accounts.
What is a ledger.
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