Assets
Assets typically have a what Normal Balance?
Debit Balance
Liabilities typically have a what Normal Balance?
Credit Balance
Owner's Equity typically have a what Normal Balance?
Credit Balance
This is a statement that tells a reader what an Entity OWNS, OWES and What is Left Over. A snapshot of a Company's Financial position.
What is a Balance Sheet
What rules do we generally follow for all Accounting Standards?
What is GAAP
What are 3 ways to account for Inventories?
LIFO, FIFO, Weighted Average
This is the account we use when we owe a vendor.
What is Accounts Payable.
When we rolforward Retained Earnings, what is it increased by and what is it decreased by?
Increased by Net Income, Decreased by Net Loss and Dividends.
This statement tells a reader what Revenue a Company has Earned and what Expenses a Company has used.
What is an Income Statement
This rule tells us to record revenue when it is EARNED and record Expneses when they are INCURRED.
What is Accrual Accounting.
This is a Contra Account used to track the usage of really large, expensive Fixed Assets.
What is Accumulated Depreciation
This is the Account we use when we Owe our Employees.
What is Wages (or Salaries) Payable.
What is the difference between Dividens and Salaries Expense?
Dividends - generally when an owner pays themselves
Salaries Expenses - generally when you pay employees.
What is the last line of the Income Statement?
Net Income (Net Loss on a bad day)
This is a listing of all eligible accounts that a company can use.
What are 2 of the ways to estimate the Allowance for Bad Debt (when customer's will not pay you)?
Aging of Receivables, % of Sales
What are the payroll taxes called that include Retirement and Medical Insurance for retirees?
Social Security and Medicare (FICA)
What is the Accounting Equation?
Assets = Liabilities + Owner's Equity
Order of magnitude with Miscellaneous Expenses last.
The 3 types of Business:
Service, Merchandising and Manufacturing
What is the journal entry that we record when we purchase supplies with cash?
Dr. Supplies (Asset), Credit Cash (Asset)
When a custome is unable to pay us, we can covert their Accounts Payable to Notes Payable, which includes what?
Contract, Interest, and generally more time.
What are the 3 important dates when a company declares and pays a dividend?
Date of Declaration
As of Record Date
Payment Date
This is the statement that we use to roll forward our Equity Accounts.
What is Statement of Stockholders' Equity. It includes Common Stock and Retained Earnings.
Accounting journal entries involve a minimum of how many Accounts?
Two