The Accounting Cycle
After journal entries are entered into the General Journal, they are posted to this location.
What is the General Ledger?
The "Land" account is considered this type of account.
What is an asset account?
This financial statement is directly tied to the Accounting Equation.
What is the Balance Sheet?
This account is credited when a company pays money to the government that it previously withheld from its employees' paychecks.
What is Cash?
This term, defined as the moral principles that govern a person's behavior, is important to ensure that accountants maintain integrity.
What are ethics?
What are adjusting entries?
The "Owner's Withdrawal" account is considered this type of account.
What is an equity account?
This financial statement shows changes in the owner's capital account.
What is the Statement of Owner's Equity?
This liability account is used to record the amount of money the organization has withheld to cover Social Security and Medicare expenses.
This section of the "Fraud Triangle" is the most preventative from a company's perspective.
What is Opportunity?
This is the final type of trial balance prepared in the accounting cycle.
What is the Post-Closing Trial Balance?
The "Unearned Revenue" account is considered this type of account.
What is a liability?
The financial statements are generated directly from this type of trial balance.
What is the Adjusted Trial Balance?
These types of entries are performed to close out temporary accounts at the end of an accounting cycle.
What are closing entries?
There were a number of companies subject to fraudulent accounting practices in the early 2000s. Name one.
What is:
Enron
WorldCom
Tyco
This method of accounting is used when revenues are recognized when earned and expenses are recognized when incurred.
What is the Accrual Method?
The "Salaries Expense" account is considered this type of account.
What is an equity account?
This financial statement, documenting a company's revenues and expenses, is often the first statement to be prepared.
What is the Income Statement?
Temporary accounts (e.g., Revenue, Expenses) are closed out to this account.
What is the Income Summary account?
This type of balance sheet delineates assets and liabilities as being either current or non-current.
What is a Classified Balance Sheet?
This is the first step in the accounting cycle.
What is Analyzing Source Documents?
The "Accumulated Depreciation" account is considered this type of account.
What is a Contra Asset account?
This financial statement summarizes a company's cash management related to its operations, investing activities, and financing activities.
What is the Statement of Cash Flow?
This expense account is used to record the employer's portion of tax liabilities.
What is Payroll Taxes Expense?
This optional document contains a summary of an organization's unadjusted trial balance, adjustments, adjusted trial balance, and financial statement balances.
What is a Work Sheet?