By the Number
What are the three principal financial statements for a corporation?
Income Statement, Statement of S/E, Balance Sheet
What are transactions that have not yet been recorded in the accounts?
accruals
What is the adjustment for supplies?
Dr Supplies Expense; CR Supplies
What is the normal balance of Income Summary?
It does not have a normal DR or CR balance
What is the the formula to calculate interest expense?
I = PRT
What are the two things the trail balance proves to be equal?
DR = CR
Accounting records can be kept on what two methods?
cash and accrual
What is the adjustment for insurance?
DR Insurance Expense; CR Prepaid Insurance
What type of account is Purchases Returns and Allowances?
contra cost
What is the term for the person or firm issuing a check?
drawer
What are the two main parts of an income statement?
Revenue and Expenses
What principle do adjusting accruals and deferrals satisfy?
Matching principle
What is the adjustment for deadbeat customers?
DR Uncollectible Accounts Expense; CR Allowance for Doubtful Accounts
What type of transaction would be recorded in a Sales Journal?
purchases of Sales on account
What acronym is used in the closing process?
REID
How many columns are in a typical worksheet?
10
How many steps are needed to adjust for merchandise inventory?
two
What is the adjustment for the lost value in equipment?
DR Depreciation Exp; CR Accum. Depr.
What type of an account is Unearned Fees?
liability
What word is used to indicate that the checkbook balance and the bank statement balance agree?
reconcile
What are the four types of special journals?
sales, purchases, cash receipts, cash payments
What type of an account is Allowance for Doubtful Accounts?
contra asset
What is the adjustment for accrued salaries that are owed?
DR Salaries Expense; CR Salaries Payable
What is the source of information for the financial statements?
the worksheet
What is the name given to checks that have been written and not presented to the bank for payment?
outstanding checks