Terms and Definitions
What does debit mean?
What is Left
Paid $7,200 cash in advance for one year of rent. What would you record?
What is debit prepaid rent for $7,200 and credit cash for $7,200.
What accounting is never in adjusting entries?
What is Cash
What accounts are closed at the end of the accounting period?
Revenues, Expenses, and Dividends
The Accounting Equation is?
What is Assets=Liabilities+Stockholders Equity
What is to measure and communicate financial information to external parties
Customers bought $3,000 services on account. What would you record?
What is Debit accounts receivable for $3,000 and credit service revenue for $3,000.
ABC Companyhad $6,000 in its supplies account on January 1. During the year the company purchased $4,000 supplies and recorded them in the supplies account. On December 31, a physical count revealed that supplies on hand were $3,000. What would you record on December 31?
What is debit supplies expense for $7,000 and credit supplies for $7,000.
Where do the numbers used in closing entries come from?
What is the adjusted trial balance
What are Liabilities worth when Revenue = 200, Expenses = 150, Stockholders’ Equity= 500, Assets= 750?
What is $250
Results from a company collecting cash from customers before providing the products or services to the customers
What is Deferred Revenue
Purchased $1,000 supplies on account. What would you record?
What is debit supplies for $1,000 and credit accounts payable for $1,000.
On February 1, ABC Company paid $15,000, for twelve months of rent in advance. What would you record on December 31?
What is debit rent expense for $13,750 and credit prepaid rent for $13,750.
When closing the Revenues, what account is Credited?
What is Retained Earnings
What is Net Income when Revenue = 500, Expenses = 200, Stockholders’ Equity = 1,000, Assets = 900?
What is $300
What is the principle that states expenses are recorded in the same period the revenues they help generate?
What is the expense recognition (matching) principle
Collected $1,500 from customers on account. What would you record?
What is debit cash for $1,500 and credit accounts receivable for $1,500.
ABC Company received a $15,000 as a cash advance for services to be performed over a one-year term beginning June 1, 2021. What would you record on December 31?
What is debit deferred revenue for $8,750 and credit service revenue for $8,750.
When Closing Expenses, what account is credited?
What is all expense accounts
What is Stockholders Equity when Common Stock = 150, and Retained Earnings = 600?
What is $750
What is used to provide a chronological record of all transactions affecting a firm?
What is the journal
Purchased Equipment for $30,000, paying $10,000 down and signing a note for the remaining balance. What would you record?
What is debit equipment for $30,000, credit cash for $10,000 and credit notes payable for $20,000.
On March 31, ABC company borrowed $25,000 from the bank. A note is signed where principal and 6% interest would be paid in exactly one year. What would you record on December 31?
What is debit interest expense for $1,125 and credit interest payable for $1,125.
When closing dividends, what account is Debited?
What is retained earnings
What is Retained Earnings When Revenues=3,000, Expenses=1,500, and Dividends=300?
What is $1,200