Nice Assets
All long-term assets incur a cost of use except for this.
What is land
Assets are listed on the balance sheet in this order
What is liquidity
In a t-account.
What is the right side.
A + L = SE
What is A = L + SE (or A - L = SE)
Unlike Revenues or Expenses which are closed out at the end of the period, Asset accounts are this.
What is permanent
According to the Revenue Recognition Principle, Revenue arises (is earned) when this happens.
What is when the company transfers promised goods or services to customers.
The primary purpose of financial reporting is to provide information to these parties.
Whom are investors and creditors
In a purchase of Supplies on account.
What is Supplies Payable.
Dr Prepaid Insurance 100 Cr Insurance Expense 100
What is Cr Cash $100
The two categories of Assets found on the Balance Sheet.
What are Current Assets and Noncurrent Assets.
When cash will not be paid until after a cost is incurred to generate revenue, initially this type of account must be recorded.
What is some form of a Payable account (an accrued obligation).
It's the cost of financing, but does not appear in the financing section of the Statement of Cash Flows.
What is Interest.
When receiving Cash for services not yet performed.
What is Unearned Revenue.
Contributed Capital = Common Stock
What is Contributed Capital = Common Stock + Additional Paid-in Capital
Collecting $30,000 in Cash from customers for services performed in a prior period changes Assets by this much.
What is $0
The specific journal entry recording $300 in Depreciation.
What is Debit Depreciation Expense for $300, Credit Accumulated Depreciation for $300
Because of the matching principle, when a company records a sale of a product, it must also record this type of journal entry.
What is an entry recording Cost of Goods Sold (and reducing Inventory).
In a closing entry.
What are Expenses and potentially Retained Earnings. DAILY DOUBLE
Dr Dividend Expense $200 Cr. Dividend Payable $200
What is Dr. Retained Earning $200
Lending money to another company creates this.
What is a Note Receivable DAILY DOUBLE
The journal entry preceding Dr. Cash $50 Cr. Accounts Receivable $50
What is Dr. Accounts Receivable $50 Cr. Revenue $50
GAAP is an acronym for this.
What are Generally Accepted Accounting Principles
When at the end of the period: Beg Supplies = $100, Purchases during the year = $50, End Supplies = $125
What is Supplies $25
Retained Earnings = Revenues - Expenses - Dividends
What is Retained Earnings = Beginning Retained Earnings + Net Income - Dividends