Income Statement
Debits and Credits
Formulas
Balance Sheet
Miscellaneous
100
the amounts a business charges its customers when it provides goods or services
What is Revenues
100
You pay $2500 cash to purchase equipment
Debit: equipment $2500 Credit: cash $2500
100

revenues - expenses = 

Net income

100
amounts presently owed by a business
What is liabilities
100
a type of organizational form that has one owner
What is a sole propietorship
200
the cost of operating the business, incurred to generate revenues in the period covered by the income statement
What is expenses
200
Borrowed $50,000 from a bank
Debit: cash $50,000 Credit: note payable $50,000
200

what is the basic accounting formula?

Assets = liabilities + Equity

200

a publicly traded corporation doesn't have owner's equity, but instead has...

What is stockholders equity

200

CPA stands for

Certified Public Accountant

300

Revenues should only be recognized when they are 

Earned

300
Purchased $20,000 in equipment, paying $16,000 in cash and the rest on account
debit: equipment $20,000 credit: cash $16,000, account payable $4,000
300

Sales revenue - COGS =

Gross Profit

300

All journal entries should be posted to the ledger account, better known by this capital letter

T-Chart

300

What are the four financial statements

Income statement, balance sheet, cash flow, statement of retained earnings

400
a liability representing a company's obligation to provide goods or services to customers in the future
What is unearned revenue
400
You provided service to customers for $15,000
debit: cash $15,000 credit: service revenue $15,000
400
Cost of a fixed asset - accumulated depreciation

book value

400
an event or activity that has a direct and measurable financial effect on the assets, liabilities, or stockholders equity of a business
What is a transaction
400
GAAP
Generally accepted accounting principles
500

Give me two contra-revenue accounts you may see on the income statement

Sales returns, sales allowances, sales discounts

500

We sell an Xbox for $500 Cash packaged with a online subscription for a year. We calculate the Xbox should be allocated $400 and the subscription $100.

debit: cash $500 credit: unearned revenue $100 credit: sales revenue $400

500

If we sell an asset that costed us $50,000 for $30,000 and it had $25,000 accumulated depreciation, this would give us a blank for how much?

$5,000 loss

500
a simplified version of a ledger account used for summarizing the effects of journal entries
What is a t-account
500

Provide all of the following: the international accounting rules, the international entity that makes the rules, the American agency that makes the rules, and the American agency that has supreme authority over the rulemaking.

IFRS, IASB, FASB, SEC

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