Show:
What Am I?
Events
Journals and Methods
Recognition of sales and Income statements
LIFO vs FIFO and errors of inventory
100
1. Event must be specific to the entity for which the accounting records are kept 2. Event must be measurable in monetary terms 3. Event must impact the entity's assets,, liabilities, and.or owners' equity.
What is characteristics of an accounting event?
100
Any kind of event that generates sales for the business.
What is revenue event?
100
An entry to the journal that records the accounting transactions in chronological order, i.e. as they occur.
What is a journal entry?
100
Recognized when earned and cash recieved
What is when revenue is recognized?
100
First in first out
What is FIFO?
200
The balance of the right side of Owners' equity
What is the normal balance?
200
Adjustments for 1) revenues that have been earned but are not yet recorded in the accounts, and 2) expenses that have been incurred but are not yet recorded in the accounts
What is accruals?
200
Updates inventory balance once in a period.
What is periodic inventory system journal entries?
200
A decrease in inventory and increase in cash.
What is increase and decrease in Balance sheet?
200
Income taxes are less if there is inflation happening
What is LIFO?
300
An asset, liability, or owners' equity account whose balance is acarried over from year to year
What is permanent accounts?
300
An event that happens on the left side of the Owners' equity account
What is expense account?
300
Inventory and cost of goods sold are updated for each sale/purchase and return transaction.
What is perpetual inventory system journal entries?
300
Increase in income due to increase in revenue.
What is increase in income statement?
300
The ending inventory represents the recent purchases.
What is FIFO?
400
an account that gets closed once the year is over and is started anew the next year.
What is temporary accounts?
400
There is an increase of owners' equity.
What is revenue increase affect on owners' equity?
400
Records an invoice at full price without regard to any cash discounts offered
What is gross price method?
400
A new product being produced leads to more ____ flow.
What is increase in statement of cash flows?
400
If cost of goods sold is overstated, net income is _____
What is understated?
500
A temporary account does this process at the end of the year
What is closing entry?
500
An increase in _____ leads to a decrease in Owners' equity, in the owners' equity column
What is an increase of expenses?
500
_____ price = Gross Price − Potential Cash Discount
What is Net Price method?
500
Increase of cash sale affects the following.
What is the income statement, balance sheet, and statement of cash flows?
500
The correlation of being understated and being overstated between Cost of goods sold and net income is ______
What is indirect?