Chapter 1-3
Of the 2 financial statements, only one does not start with for month ended?
What is the Balance Sheet
How many closing entries are there?
What is 4?
The effect on the accounting equation of writing off an uncollectible receivable.
What is a decrease to assets and a decrease to equity.
If you lose money in a financial period it is called a net ______?
What is loss?
The __________ section of the worksheet contains just the permanent accounts
Balance Sheet
Double entry accounting means what "golden rule" must always be followed when recording transactions and adjustments.
Total Debits = Total Credits
Costco Retail store utilises the allowance method for uncollectible receivables.
Earlier in the period they had to write off $5,000 of an uncollectible account. Now the customer has showed up to pay the $5,000. What journal entries, if any, need to be made.
1) Reinstate the account
D: Accounts Receivable 5,000
Cr: Allowance for doubtful 5,000
2) record collection
D: Cash 5,000
Cr: Accounts receivable 5,000
Notes receivable can be issued for
What is
Cash
Accounts Receivable
Non-cash assets.
Limitations of Internal Control
What is Collusion, Human Error, Costs greater than benefits.
The 4 sections of the worksheet
Trial balance, adjustments, Income Statement, and Balance Sheet
Name the 2 financial statements prepared after the Worksheet.
What is the Income Statement and the Balance Sheet.)
Accounts that are closed are called _____ accounts.
What is temporary.
A monetary claim against cash.
What is a receivable.
Mark Twain said 2 certainties in life are ______ and _____.
What are death and taxes?
The first account on the Income Statement
Revenue: Sales
Purpose of a Trial Balance.
What is verify total debits = total credits.
What is the last acct on the post-closing trial balance?
What is the Owners Capital Account?
The accounts are the opposite of the original account.
What are contra accounts?
Major 5 acct classifications
What are Assets, Liabilities, Owner's Equity, Revenue, Expenses?
Net inc is entered in what column of the income statement
Debit Column
Your ending capital appears on what financial statements
Balance Sheet
What accounts are on the income statement?
Sales Revenue, and All expenses
Statement shows a checks and other debits item of a NSF check for $900. This check was received from a customer. What, if any, journal entry needs recorded after completing the reconciliation?
Dr: Accounts Receivable 900
Cr: Cash 900
What act did Congress pass to require companies to review internal control and take responsibility for the accuracy and completeness of financial statements?
What is Sarbanes-Oxley Act of 2002?
(SOX)