Financial Statements
What is the income statement?
What is being recorded in this entry?
Debit Depreciation Expense
Credit Accumulated Depreciation
What is depreciation on a fixed asset?
GAAP
What is generally accepted accounting principles?
Provide an example of a fixed asset.
What is Land, Buildings, Equipment, Machinery, etc.?
What type of account?
Accounts Payable
What is a liability?
Where Investments, Bonds Payable, and Common Stock are reported
What is the balance sheet?
What is being recorded in this entry?
Debit Equipment
Credit Notes Payable
What is the purchase of equipment and paying via a liability?
Regarding an asset that is depreciated, DDB is a method that may be used. What does it stand for?
What is double declining balance?
Provide an example of a GAAP depreciation method.
What is straight-line, DDB, 150% declining balance, units-of-activity, sum-of-years digits, etc.?
What type of account?
Accumulated Depreciation
What is a contra asset?
Where the operating activities section, investing activities section, and financing activities section are reported
What is the statement of cash flows?
What is being recorded in this entry?
Debit Accounts Receivable
Credit Sales
What is recording a sale on account?
An LLC is a type of business entity that protects the business owner's personal assets in the event of bankruptcy. What does LLC stand for?
What is limited liability company?
Provide an example of an inventory costing method.
What is FIFO, LIFO, Dollar Value LIFO, Weighted Average?
What type of account?
Accounts Receivable
What is an asset?
These two things affect a company's Retained Earnings.
What is net income or (net loss) and dividends?
What is being recorded in this entry?
Debit Unearned Rent
Credit Rent Revenue
What is recognize revenue and reduce the liability?
COGS
What is Cost of Goods Sold?
Provide an example of a Stockholders' Equity account.
What is Retained Earnings, Capital, Drawing, Common Stock, Preferred Stock, APIC, Treasury Stock?
What type of account?
Administrative Expense
What is an expense?
Fixed assets are reported at book value on the financial statements. How do you find book value?
What is the cost of the asset minus accumulated depreciation?
What is being recorded in this entry?
Debit Cash
Credit Common Stock
Credit Paid-In Capital in Excess of Par
What is issue common stock above par?
PP&E
What is property, plant, and equipment?
Provide an example of an intangible asset.
What is Goodwill, Copyright, Trademark, Patent, etc.?
What type of account?
Allowance for Doubtful Accounts
What is a contra asset?