Adjustments/Adjusting Entries
Accruals
Financial Statements
Deferrals
Closing
100

Needed to bring accounts up to date and match revenues and expenses.

What are adjusting entries?

100

Occurs when revenue has been earned or an expenses has been incurred bur has not been recorded.

What are accruals?

100

These 3 items are found at the very top of the balance sheet (in order).

What are 1) Name of business, 2) Name of the financial statement and 3) Statement date?

100
This is what GAAP stands for
What are generally accepted accounting principles?
100
Shows the company's revenues and expenses
What is the income statement?
200

Cash.

What is the account that does not require an adjusting entry?

200

Expenses are reported and recorded only when they have been incurred for services performed or a product delivered, regardless whether or not cash has been received (paid).

What is Accrual Accounting or Accrual Basis of Accounting?

200

This contra asset account appears on the classified Balance Sheet in the Property, Plant and Equipment section.

What is Accumulated Depreciation?

200
This private sector group responsible for the creation of GAAP
What is the Financial Accounting Standards Board (FASB)?
200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300

States that the revenues and related expenses should be reported in the same period.

What is the matching principle?

300

A plumber has renovated the bathroom at your house, but you have not received an invoice or made a payment.

What is an accrued expense?

300

1. Income Statement

2. Statement of Stockholders' Equity 

3. Balance Sheet

What is the order in which financial statements are prepared?

300
This GAAP principle states that accounting for a business needs to be kept separate from the personal affairs of the owner.
What is the Business Entity Assumption?
300
The effect on equity when an owner withdraws cash from the business
What is decreases?
400

The balance is the office supplies account on December 1 was $5,000, and $2,000 of supplies were purchased during December, and the supplies on hand at December 31 were $1,500. Determine the amount to be used; and then, journalize.

What is the adjusting entry for supplies?

400

Debit - Wages Expense

Credit - Wages Payable

What is the adjusting entry for accrued wages?

400

Asset = Liabilities + Stockholders' Equity

or

Assets - Liabilities = Stockholders' Equity

What is the Accounting Equation?

400
The GAAP Principle states that a company should record expenses when they are used to generate revenue
What is the expense recognition principle (Matching Principle)?
400
Creditors claims on assets
What is a liabilities?
500

Debit - Insurance Expense   $16,500

Credit - Prepaid Insurance   $16,500

What is adjusting entry for prepaid insurance?

500

Expenses owed but not yet paid.

What are accrued expenses?

500

A balance sheet is prepared to in order to show this.

What is financial position?

500
This GAAP Principle states that accounting information should be based on the actual cost
What is the Cost Principle?
500
The effect on assets when a company receives cash on their accounts receivable.
What is no effect? One assets (cash) goes up and another asset (A/R) decreases.
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