Accounting

What Account would be the total balance for outstanding invoices billed to customers be on the balance sheet?

Accounts receivable

Which of the following is a contra account? -Line of Credit -Mary Smith Capital -Accumulated Depreciation -Cash

Accumulated Depreciation

Under the accrual basis of accounting , expenses are reported in the accounting period when which ion the following occurs?

An epense matches the revenue or is used up

Resources owned by the company are reported on the BS and are refereed to as

Assets

When a customer comes in to pay an invoice what account is debited and what account is credited

Cash is debited, Accounts receivable is credited

When a company receives cash

Cash will be debited

Assets on the BS are usually reported at -Cost -Current Market Value -Expected Selling Price -Average purchase price

Cost

What is the normal balance for a liability account

Credit

What term is associated with the right side

Credit

What transaction will usually cause the liability account to increase

Credit

entries to revenue accounts such as service revenue are usually

Credits

What is the normal balance for an asset account

Debit

What term is associated with the left side

Debit

What transaction will usually cause an asset account to increase

Debit

ABC Co. recieved $1000 in December for services it will perform the following month

Debit Cash(Asset) and Credit Unearned Revenue(liability)

Entries to expenses such as Rent Expense are usually

Debits

The amount reported on a company's balance sheet for PPE is the company's estimate of the fair market value as of the balance sheet date

False(book Value)

Which statement reports the revenues and expenses for a period of time?

Income Statement

Deferred Credits

It's a liability. When cash received before earned, a deferred credit is reported. A deferred credit is recognized when it is earned 1. unearned interest income 2. unearned rental income 3. unearned royalty income

Which of the following is not a current asset? -Prepaid Insurance -Supplies -Land -Accounts Receivable

Land

Deferred credits will appear on the balance sheet under which classification?

Liabilities

Obligations(amounts owed) are reported on the balance sheet and are referred to as

Liabilities

ABC Co. incurs cleanup expense of $500 on December 30. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9. ABC follows the accrual basis of accounting and its accounting year ends on December 31. What is the effect of the cleanup service on the December balance sheet of ABC?

Liabilities Increase

Unearned revenue is what type of account

Liability

Revenues minus expenses =

Net Income

Which of the following is an asset account? -Unearned revenue -Accounts payable -Notes Payable -Prepaid Insurance

Prepaid Isnurance

Current Assets

Resources that belong to a business that are intended to be used within the next twelve months, such as cash, debtors and stocks

Why revenues are credited

Revenues cause owner's equity to increase. Since the normal balance for owner's equity is a credit balance, revenues must be recorded as a credit.

Under the accrual basis of accounting, revenues are reported in the accounting period when which of the following occurs

Services or goods have been delivered/rendered

Which of the following is normally a current liability? -Unearned Revenue -Notes Payable due in 2 years -Accounts Recievable -Depreciation

Unearned revenue

Contra Account

an account used in a general ledger to reduce the value of a related account. They are useful to preserve the historical value in a main account while presenting a decrease or write-down in a separate contra account that nets to the current book value

The listing of all of the accounts available for use in a company's accounting system is known as the

chart of accounts

What is another name for the balance sheet?

statement of financial position

On December 1st, Abc Co hired Juanita Perez to begin working on January 2nd at a monthly salary of 4000. ABCS balance sheet at December 31st will show a liability of amount?

No liability

Liabilities often have the word __________ in their account title.

Payable

The balance sheet Sheet represents values in a point in time

Point in Time

When a company pays a bill

Cash will be credited