Defining Moments
The amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services?
Profit
A health club, a spa, and a hospital are examples of what kind of business?
Service Business
Unearned Rent is an example of what kind of adjusting entry in Accounting?
Deferred Revenue or Unearned Revenue
Cash
What kind of account is Accounts Payable?
Liability
Which type of accountant typically practices as an individual or as a member of a public accounting firm?
Certified Public Accountant (CPA)
This type of business entity generates 90% of business revenue in the United States and is used by large businesses
Corporation
Fees received but not yet earned.
Unearned Revenue
Accounts that we expect will be paid to us
Accounts Receivable
What kind of account is the owner's capital account?
Owner's Equity
a listing of accounts that make up the journal
Chart of Accounts
The first financial statement that we prepare
Income Statement
Under normal circumstances, the cash account will be adjusted, Yes or No?
No
Account that shows the short term amount owed by the business to other businesses or individuals
Accounts Payable
What kind of account is Supplies?
Asset
The gross increases in owner's equity attributable to business activities are calle
Revenue
What order are accounts listed in in the chart of accounts?
Assets, Liabilities, Owner's Equity, Revenues, Expenses
Paid premium on a one-year insurance policy.
Prepaid Expense
The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.
Depreciation Expense
What kind of Account is Fees Earned?
Revenue
What is the accounting equation?
Which basis of accounting is required by GAAP?
Accrual Basis
Property tax owed to be paid beginning of next year.
Accrued Expense
An income statement account that reports the amount of service revenues earned during the time interval indicated in the heading of the income statement.
Fees Earned
Liability
What principle states that revenue is recorded and reported only when the services are rendered without regard to when cash is received?
Revenue Recognition Principle
The financial document that shows that debits equal credits
Trial Balance
Fees earned but not yet received.
Accrued Revenue
The total amount of a company's cost that has been allocated to depreciation expense since the asset was put into use
Accumulated Depreciation
What kind of account is Accumulated Depreciation?
Contra-Asset