Accounting Events
Types of acounts
Revenue and Expenses
Business Related
Fifo/Lifo
100
For Accounting, an Event; any financial deal that would impact the account balances of a company's financial statements. Every time the company uses or receives cash, or adjusts an entry in its accounting records, an accounting event has occurred.
What is Accounting Event
100
A general ledger account that begins each accounting year with a zero balance.
What is Temporary Accounts
100
An event when an investor or a business earns money.
What is revenue event
100
A record that keeps accounting transactions in chronological order, i.e. as they occur. Ledger is a record that keeps accounting transactions by accounts. Account is a unit to record and summarize accounting transactions.
What is Journal Entry
100
Leads to higher taxes
What is FIFO
200
Key sources of accounting information (or records) and evidence used to prepare, verify and/or audit the financial statements.
What is Accounting Records
200
A balance sheet account that is used to record activities that relate to future periods, never closed at the end of the accounting period
What is Permanent Account
200
An event where a business or investor spends money
What is Expense event
200
Inventory system updates inventory perpetually on accounts after each purchase or sale.
What is Perpetual Inventory
200
Leads to lower taxes
What is LIFO
300
An equation, Assets - Liabilities = Owners Equity
What is Balance sheet equation
300
Journal entries made at the end of an accounting cycle to update certain revenue and expense accounts and to make sure you comply with the matching principle.
What is Closing Entries
300
A type of notice that is given if accrual payments are not paid
What is an Invoice
300
Updates that are made on a periodic basis, no effort is made to keep up-to-date records of either the inventory or the cost of goods sold.
What is Periodic System
300
Shows largest possible profit on financial statements
What is FIFO
400
Relating to currency or money
What is Monetary
400
A journal entry made at the end of an accounting period to transfer the temporary account balances to the permanent accounts
What is Closing Entries
400
Allows an entity to record expenses and revenues for which it expects to expend cash or receive cash, in a future reporting period. A customer owes a business money for a product they got.
What is Accrual Accounting
400
Records an invoice at full price without regard to any cash discounts offered
What is Gross Method
400
Too much being reported
What is Overstated
500
Expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts.
What is Normal Balance
500
What entry is supplies Expense, end of inventory expense, and payroll expense a part of
What is closing entry
500
An approach to planning and decision-making that reverses the working process of traditional budgeting
What is zero based budgeting
500
Gross cost of an object, reduced by any benefits gained from owning the object.
What is Net Price Method
500
The amount is not the correct amount, and. The amount is less than the true amount.
What is Understated
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