External or internal transaction or change that is recorded in the double-entry bookkeeping system as a debit or credit entry.
What is an accounting event?
100
Income statement, Balance sheet, and Statement of Cash Flows
What is The three financial statements are..
100
Updates inventory balance once in a period.
What is a periodic inventory system?
100
Stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold.
What is FIFO?
100
A balance sheet account that is used to record activities that relate to future periods.
What is a permanent account?
200
Revenue is the term used to describe income earned through the provision of a business' primary goods or services, while expense is the term for a cost incurred in the process of producing or offering a primary business operation.
What is the difference between revenue and expense?
200
This statement tells you whether the company can pay its bills on time, its financial flexibility to acquire capital and its ability to distribute cash in the form of dividends to the company's owners.
Balance Sheet
200
Inventory purchase, Purchase discount, Purchase return, Inventory sale, Sales discounts, and Sales return
Journal entries for periodic inventory system are..
200
Stands for last-in, first-out. It is a cost flow assumption that can be used by U.S. companies in moving the costs of products from inventory to the cost of goods sold.
What is LIFO
200
A general ledger account that begins each accounting year with a zero balance.
What is a temporary account?
300
Are adjustments for revenues that have been earned but are not yet recorded in the accounts, and expenses that have been incurred but are not yet recorded in the accounts
What are accruals?
300
This statement tells you both the earnings and profitability of a business.
Income Statement
300
A method of tracking and recording inventory and costs of goods sold on a continual basis, so a current inventory balance can be calculated in real time.
What is perceptual inventory system?
300
What are the two inventory accounting methods?
FIFO & LIFO
300
What are four adjusting entries?
-Accrued Income
-Accrued Expense
-Deferred Income
-Prepaid Expense
400
Value of a product or service before any cash discounting is considered.
What is gross price?
400
This statement tells you the sources and uses of cash during the period also provides information about the company's investing and financing activities during the period.
Statement of Cash Flows
400
Inventory purchase, Purchase discount, Purchase return, Inventory sale, and Sales return.
Journal entries for perceptual inventory system are..
A final price after deducting all discounts and rebates.
What is net price?
500
Negative cash flows can persist for several years and require substantial financing.
How does cash sale affect cash flow?
500
Inventory purchase, Purchase discount, Purchase return, Inventory sale, Sales discounts, and Sales return are all journal entries for which inventory system?
Periodic Inventory System
500
Stands for Last in, First out..
LIFO
500
This account begins as zero at the start of every year..