Terminologies
Expenses already incurred but not yet paid?
What are accrued expenses?
The first financial statement a company prepares at fiscal period end.
What is Income Statement?
If salaries have been incurred but not yet paid, Debit Salaries Expense and Credit _____________________
What is Salaries Payable?
Transferring journal entries to the ledger accounts is called
What is Posting?
Accounts in an Income Statement are called__________________
What are nominal accounts/temporary accounts?
Revenues already earned but not yet received?
What are accrued revenues?
The financial statement based on the accounting equation.
What is Balance Sheet?
In Adjusting prepaid expenses, recognize the used portion as ___________________.
What is Expense?
The normal balance of Capital accounts
What is credit?
Accounts in a Balance sheet are called_______________.
What are real accounts/permanent accounts?
Expenses already paid but not yet incurred.
What are prepaid expenses?
The financial statement that looks at cash payments and cash receipts of a company for a specific time period.
What is Cash Flow Statement?
In case of Unearned Revenues, in making the adjusting entry, recognize the earned portion by crediting _______________________.
What is Revenue or Service Revenue?
Normally, if credit side is greater than debit side of a ledger account, it has a ______________ balance
What is credit?
If revenues are greater than expenses, the results of operations is a __________________.
What is net profit/net income?
These are entries prepared to update the books of accounts.
What are Adjusting Entries?
The financial statement that shows the net profit or loss.
What is Income Statement?
To adjustment prepaid expenses, Debit Expenses and credit ______________________.
What are Prepaid Expenses?
Extracting balances of ledger accounts is called
What is Balancing?
If expenses are greater than revenues, the results of operation is ___________________.
What is net loss?
Revenues already received but not yet earned.
What are Unearned Revenues?
The financial statement that shows investment, net profit or loss and drawing?
What is Statement of changes in owner's equity?
To adjust accrued revenues, Debit ________________ and credit Revenues.
What is Receivable or Accounts Receivable?
Assets, Expenses and Drawing have normal ______________ balances.
What is debit?
The accounts that need to be closed at the end of the accounting period are __________________.
What are norminal/temporary accounts?