Accounting

Note that the accounts listed in the post-closing trial balance are _______ ________ accounts.

Only the Real or Permeant

Is stock that a corporation has issued and then reacquired.

Treasury stock

Fiscal Year

a fiscal period consisting of twelve (12) consecutive months.

The Accounting Cycle

represents the sequence of steps in the accounting process completed during the fiscal period.

At the end of the accounting period, all _____ _____ are closed because they are related only to a given accounting period

temporary accounts

Steps of accounting cycle:

1. Analyze Source documents and record business transactions in a journal 2. Post journal entries to the accounts in the ledger 3. Prepare a trial balance 4. Gather adjustment data and recored the adjusting entries on a work sheet 5. Complete the work sheet 6. Journalize and post the adjusting entries from the data on the work sheet. 7. Prepare financial statements form the data on the work sheet 8. Journalize and post the closing entries 9. Prepare a post-closing trial balance.

Retained earnings may be reported using on of the following:

>Separate retained earnings statement >Combined income and retained earnings statement > Statement of stockholders' equity

Earnings per share

>Significant variable to determine a share's price (profitability) > EPS is the net income per share of common stock outstanding during a period. >EPS is computed as follows.

Closing simply makes the balance equal to

0

Drawing is a ______ account.

Contra

Stockholders Equity: Paid in Capital, Capita, or Contributed capital are ______.

Contributions to the corporation by the stockholders.

Stockholders Equity: Retained Earings

Corpoartions cumulative net income that has not been distributed as dividends.

Non-public or private

Corporations whose shares are owned by a small group of investors.

Public

Corporations whose shares of stock are traded in public markets

Accumulated Depreciation, Equipment account normal balance is a ________ balance.

Credit

Capital account normal balance is a _____ balance

Credit

Net Income is added to the Capital account

Credit

Date the BoD formally authorizes the payment of the dividend; on this date the corporation incur the liability to pay the amount of the dividend

Date of declaration

Date the corporation will pay the dividends to the stockholders who ones the stock on the date of record

Date of payment

Date the corporation uses to determine which stockholders will receive the dividend

Date of record

Drawing account normal balance is a _____ balance.

Debit

Equipment account normal balance is a ________ balance.

Debit

Net Loss is deducted from the Capital account

Debit

Credits are used to record

Decreases to assets and expenses and increases to liabilities, revenues, and stockholders' equity

_______ are distributions of a corporation's earnings to stockholders

Dividends

Accumulated Depreciation, Equipment is deducted from which account?

Equipment

Durable items, such as appliances and fixtures, are recorded as _______ because they will last longer than one year.

Equipment

Year-end accounts (revenues, expenses, gains, & losses

Income Statement

Temporary Accounts

Income Statement; Income Summary; Dividends or Drawings

The ________ is also closed when Net income or Net Loss is transferred to the capital account.

Income Summary Account

*Which of the following groups of accounts all have debit balances:

(B)Account Receivable, Merchandise Inventory, and Salary Expense

*Which of the following would be considered a fiscal year? (a) July 1, 20- to June 30, 20- (b) October 1, 20- to August 31, 20- (c) April 1, 20- to January 31, 20- (d) January 1, 20- to December 31, 20-

(a) and (d)

What is a corporation

*legal entity *distinct and separate from the individuals who create and operate it *may acquire, own, and dispose of property in its own name *a corporation sells shares of ownership, called stock *is subject to taxes (double taxation)

On the balance sheet, the balance of ______ ______ is deducted from the balance of the related Equipment asset account.

Accumulated Depreciation

At the end to the period we need to make ______ _______ to bring the accounts up-to-date for the financial statements.

Adjusting Entries

*Total assists remain the same when:

An account receivable is reclassified as a note receivable.

Equipment is a(an) Asset, Liability, or a SE account?

Asset

Drawing is deducted from the _____ account.

Capital

If there is only one class of stock, the account is entitled ______ or ______

Common Stock or Capital Stock

Two (2) Primary classes of stock are:

Common stock; Preferred stock

______ or _____ are related to one or more future accounting periods.

Permanent; Account

The primary attractiveness of _________ is that it is given a preference to dividends over common stock.

Preferred Stock

Temporary account creat to close ______ and______ accounts

Revenue; Expense

A distribution of dividends to stockholders in the form of the corporation's own shares

Stock Dividends

Characteristics of a Corporation

Stockholders -> Board of Directors -> Officers -> Employees

The owner's equity in a corporation is called _______

Stockholders' equity

Fiscal Period

any period of time covering a complete accounting cycle.

Net Income (or loss)

is the difference between revenue and expenses

Accountants refer to these accounts as,_____ _____ which are accounts with balances that are partly income statement and partly balance sheet amounts.

mixed accounts