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?
