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