Cash vs Accrual
What is when cash is spent?
The type of calculator and scantron you need for your test
What is 4 function and skinny green scantron?
What is cash account?
Y/N Payment of rent for 3 months in advance would decrease assets and decrease NI
What is false?
What is at the end of an accounting period?
How revenue is recognized under cash basis accounting
What is when cash is received?
What is RE?
cash is paid by company before expense has been inccured
What is deffered?
T/F There will be errors on the test but it won't tell you it's an error
What is true?
% interest is ALWAYS presented on a ____
What is annual basis?
Not pertaining to 229 but is it possible for you to convert from cash to accrual accounting?
What is yes?
Definition of current assets
cash is received after revenue or expense is recognized
What is accrual?
AJE needed to correct purchasing 2-year insurance policy on 6/30 for 5000 and debiting insurance expense. It is currently 12/31
What is debit prepaid insurance 3750
credit insurance expense 1250?
Balance sheet account you close revenue, expenses, and retained earnings to
Biggest difference between cash and accrual accounting
What is the timing?
Matching principle definition
What is matching expenses incurred with revenues earned in same accounting period expenses helped to generate revenue?
What is Overstated?
AJE for buying equipment on 1/1 and recording it as 10,000 in misc expenses, and it has 10 year life with 0 salvage value. Today is 12/31
What is debit 10,000 equipment
credit 1,000 A.D
debit depreciation expense 1,000
credit misc. expense 10,000
Meaning of balance sheet accounts being "real"
What is ending balance from one year becoming beginning balance for next year?
What are non public companies not following GAAP?
Revenue is recorded when "Earned" but what does "earn" specifically entail?
What is completing a performance obligation?
U/O/NE: What happens to this year's equity when you forget to record depreciation for last year but fixed it for this year (HARD lol)
What is no effect?
AJE to fix error of recording 5000 as supplies expense, 3000 of supplies was used last year (different accounting period), and 500 was used this year (this accounting period)?
What is debit supplies for 1500, credit supplies expense for 1500?
Purpose of closing entries
What is to bring all nonimal account (IS) balances to zero?