What's that Word
Information and measurement system that identifies, records and communicates an organization's business activities
Accounting
Purchase of Supplies for $800 Cash
Supplies $800
Cash $800
We accrued $550 worth of wages that we will pay to our employees at the start of next week.
Wages Expense $550
Wages Payable $550
Cash
Asset, increases with a debit
He is most known for spilling his famous chili all over his office and inventing the number "Keleven"
Kevin Malone
The concepts and rules financial accounting is governed by
GAAP
Provided $1,000 worth of service for a client on credit.
$1,000 Accounts Receivable
$1,000 Service Revenue
We close our Dividends account with an $875 balance.
Retained Earnings $875
Dividends $875
Accounts Payable
Liability, increases with a credit
He starred in 2016's The Accountant, is married to J-Lo, and is most famous for being friends with Matt Damon
Ben Affleck
Beliefs that separate right from wrong
Ethics
We paid out a $700 cash dividend to our investors.
Dividends $700
Cash $700
We adjust the Prepaid Insurance account for the amount that was used. The starting balance was $1,550 and the ending balance was $850.
Insurance Expense $700
Prepaid Insurance $700
Retained Earnings
Equity, increases with a credit
Her brother is a DEA agent, yo, her husband is a chemistry teacher, yo, and she owns a definitely legally-abiding carwash, yo
Skylar White
Opportunity, pressure, and rationalization are the three factors of this
The Fraud Triangle
We recorded $400 worth of depreciation for the month on our company's vehicle.
Accumulated Depreciation - Vehicle $400
We adjust our Unearned Revenue. The starting value was $3,000 and the ending value was $1,200.
Unearned Revenue $1,800
Service Revenue $1,800
Accumulated Depreciation
Contra-Asset Account, increases with a credit
He invented The Cones of Dunshire, loves calzones, and is married to Leslie Knope
Ben Wyatt/Adam Scott
This system requires balance in recording business transactions
Double-entry system of accounting
A customer paid me $2,000 for services that are to be completed next month.
Cash $2,000
Unearned Revenue $2,000
We close the net income/net loss balance at the end of the period. The balance is $7,865 credit.
Income Summary $7,865
Retained Earnings $7,865
Dividends
Contra-Equity, increases with a debit
It took him 19 years to escape prison for a crime he did not commit, he became friends with Morgan Freeman, and he enjoys a good poster
Andy Dufresne in Shawshank Redemption