accounting

Retained earnings is reported on the Balance Sheet.

How is the Balance Sheet linked to the other financial statements?

asset

receivable

income statement

what tells us if we make any money?

dividends

when shareholders decide they want to take out of the company?

income statement

which financial statement would you analyze to assess a firms operating performance for the past year?

preparing a trail balance

which of the following is not part of the recording process?

a credit entry is posted to the wrong account, but still a credit.

which of the following will not cause a trail balance to be out of balance

common stock and accounts payable

which pair of accounts has the same set of rules for debit and credit entries?

how do I find net income

you subtract expenses from the revenue.

revenue and the related expenses in the period the revenue earned, whether payment is received or not.

A company that sells merchandise to customers should normally recognize

liability or equity

A credit is an accounting entry that either increases a?

asset or expense

A debit is an accounting entry that either increases an

Statement of Retained Earnings

Shows the retained earnings at the beginning and end of the accounting period.

assets and liabilities increase

The purchase of office equipment on credit has what effect on the accounting equation?

dividends

What type of account is increased with a debit but represents a decrease in retained earnings?

Income Taxes Payable and Salaries Payable

Which of the following accounts are normally reported as current liabilities on a balance sheet?

Time period, because accrual accounting divides earnings into time periods.

Which of the following concepts is important to accrual accounting?

Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings

Which one of the following correctly represents one of the basic financial statement models?

equipment and salary expense

Which pair of accounts has the same set of procedures for debit and credit entries?

Cash, Accounts Receivable, Inventory, and Office Supplies

Which set of items below are current assets?

no net effect (shift in assets)

a company purchased equipment for 1,500 cash. what is the effect on total assets?

balance sheet

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

The Income Statement shows

a summary of the results of operations for a period of time.

revenue is usually a?

credit

liability

an amount owed by a business

revenue

an increase in owner's equity resulting from the operation of a business

asset

anything of value that is owned

share holders equity

common shares

dividends are usually a?

debit

expense's are usually a?

debit

share holders equity

dividends

revenue

earned

"Revenues" are best described as

increases in assets resulting from the sale of products or services.

A revenue account:

is increased by credits

liability

payable

share holders equity

retained earnings

owner's equity

retained earnings common shares dividends

The revenue recognition principle states that:

revenue should be recognized in the accounting period in which a performance obligation is satisfied

balance sheet

statement of financial position

income statement accounts

summarizes the financial impact of operating activities undertaken by the company. includes three main sections: revenues, expenses, and net income

owner's equity

the amount remaining after the value of all liabilitites is subtracted from the value of all assets

expense

the cost it takes to do something for business

journalizing

the term for the process of recording business events in a book of original entry is?