Acct 1301: Final

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as

Assets

Which accounts are permanent accounts (carry over to the next accounting year)?

Assets, Liability, most owner/stockholder equity accounts

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

Balance Sheet

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

Chart of Accounts

Assets are usually reported on the balance sheet at which amount?

Cost

Contra Asset

Credit

Gains

Credit

Liability

Credit

Owner's Equity

Credit

Revenues (income)

Credit

Stockholders' Equity

Credit

When cash is paid out

Credit cash

When a company pays a bill, the account Cash will be

Credited

Assets

Debit

Contra liability

Debit

Dividends

Debit

Expenses

Debit

Losses

Debit

How are revenues recorded on a journal entry when a company performs a service on CREDIT (allows the client to pay for the service at a later date)?

Debit accounts receivable, credit service revenues

When cash is received

Debit cash

What is recorded in the general ledger if your company receives a downpayment for a future service?

Debit cash, credit unearned revenues

What is recorded on a journal entry when you are paying a rent expense?

Debit rent expense, credit cash

How do you increase an expense account?

Debit the account

What is recorded on a journal entry when your hourly paid employees work the last week in the year but will not be paid until the first week of the next year?

Debit wages expense, credit wages payable

When cash is received, the account Cash will be

Debited

DEAL (Accounts that Increase with Debit

Dividends, Expenses, Assets, Losses

Under the accrual basis of accounting, expenses are reported in the accounting period when the

Expense Matches The Revenues Or Is Used Up

GIRLS (Accounts that increase with credit)

Gains, Income, Revenues, Liabilities, Stockholder's/Owner's Equity

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

Income Statement

Balances in the revenue and expense accounts are zeroed out by closing/transferring/clearing their balances to the

Income Summary account

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

Liabilities

Unearned Revenues is what type of account?

Liability, because the company has received cash in advance and has an obligation to deliver service/product

Revenues - Expenses =

Net Income

The net amount in Income Summary is closed/transferred/cleared to the

Owner Equity Account

If you credit cash, you debit _____

Purchase/inventory or accounts payable (if purchase/inventory is already recorded)

Temporary Accounts

Revenue, expense, Gain and loss, income summary accounts

Examples of Expense Accounts (Debit)

Salaries, wages, rent, supplies, interest

If you debit cash, you credit _______

Sale or accounts recievable (if sale is already recorded)

Revenue Accounts that increase debit

Sales Returns, Sales allowances, sales discounts

Revenue Accounts that increase credit

Sales, Service, Interest(Income), gain on sale of assets

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

Service Or Goods Have Been Delivered

Assets - Liabilities =

Stockholder's equity or owner's equity

What happens to temporary accounts when the next accounting year begins?

The accounts close & have zero balance

Accounting entries involve a minimum of how many accounts?

Two

Contra accounts

accounts with balances that are opposite of the normal balance

Liabilities often have the word _________ in their account title.

payable