Account
Classifications
Classifications
Supplies
What is an example of an asset?
Office supplies on hand that will be used in the next period.
What is a prepaid expense?
Mr. Richey invested cash in the business.
What is the cash receipts journal?
Bonding of employees that handle cash.
What are human resource controls?
Timberlands
What depletes?
Accounts Payable
What is an example of a liability?
Interest expense incurred; not yet paid.
What is an accrued expense?
Sold merchandise to customer on account.
What is the sales journal?
Store cash in safes and bank vaults.
What are physical controls?
Equipment
What depreciates?
Owner's Drawing
What makes owner's equity go down?
An expense incurred; not yet paid or recorded.
What is a prepaid expense?
Purchased a 2-year fire insurance policy for cash.
What is the cash payments journal?
Use remittance advice and cash register tapes.
What are documentation procedures?
Oil Deposits
What depletes?
Revenue
What makes owner's equity go up?
A revenue not yet earned; collected in advance.
What is unearned revenue?
Purchased merchandise on account.
What is the purchases journal?
Different individuals receive cash and record cash receipts.
What are segregation of duties?
Research and development costs
What is an expense?
Most Liquid Asset
What is cash?
A revenue recognized; not yet collected or recorded.
What is an accrued revenue?
Purchased store supplies on account.
What is the general journal?
Treasurer compares total receipts to bank deposits daily.
What is independent internal verification
Licenses (limited life)
What amortizes?