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Chapter 5
Chapter 5
Chapter 5 & 6
Chapter 6
Chapter 5 & 6
100
method of accounting under which revenues are recorded when earned and expenses are recorded when incurred.
What is accrual basis of accounting?
100
Difference between the asset account and its related accumulated depreciation account.
What is book value?
100
Method of matching an asset's original cost against the revenues produced over its useful life.
What is depreciation?
100
Steps involved in accounting for all of the business activities during an accounting period.
What is accounting cycle?
100
The right side and the left side.
What is debit and credit?
200
The period of time that an asset is expected to help produce revenues.
What is useful life?
200
amount an item can be sold for or under normal economic conditions.
What is market value?
200
Method in which the depreciable cost is divided by the estimated useful life.
What is straight line method?
200
Process of giving zero balances to the temporary accounts so that they can accumulate information for the next accounting period.
What is closing process?
200
liabilities that are due within one year or the normal operating cycle of the business.
What is current liabilities?
300
the expected market value of an asset at the end of its useful life.
What is salvage value?
300
assets of a durable nature that will be used for operations over several years?
What is plant assets?
300
Cash and assets that will be converted into cash or consume within either one year or the normal operating cycle of the business, whichever is longer.
What is current assets?
300
assets that are expected to serve the business for many years.
What is property, plant, and equipment: or long term assets.
300
Journal entries made at the end of an accounting period.
What is adjusting entries?
400
method of accounting that combines aspects of the cash and accrual methods.
What is modified cash basis?
400
requires assets to be recorded at their actual cost.
What is historical cost principle?
400
The cost of an asset that is the subject to depreciation.
What is depreciable cost?
400
Accounts that accumulate information across accounting periods.
What is permanent accounts?
400
Columns used to prove the equality of the debits and the credits in the general ledger accounts.
What is adjusted trial balance columns?
500
The difference between the asset account and its related accumulated depreciation account.
What is undepreciated account?
500
Requires the matching of revenues earned during an accounting period with the expenses incurred to produce the revenues.
What is matching principle?
500
An account with a credit balance that is deducted from the related asset account on the balance sheet.
What is contra-asset?
500
obligations that are not expected to be paid within a year.
What is long term liabilities?
500
Method of accounting under which revenues are recorded when cash is received and expenses are recorded when cash is paid.
What is cash basis of accounting?