accounting pre-test #4
Asset
(n.) something of value; a resource; an advantage
Credits
Entries to revenues accounts such as Service Revenues are usually
Debited
When cash is received, the account cash will be
Debit
what will usually cause an asset account to increase?
Credit
what will usually cause the liability account Accounts Payable to increase
Income Statement
1. The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
Two
Accounting entries invlove a minimum of how many accounts
Cost
Assets are usually reported on the balance sheet at which amount?
Debit
Entries to expenses such as Rent Expense are usually
Payable
Liabilities often have the word __________ in their account title
Liabilities
Obligations (amounts owed) are reported on the balance sheet and are referred to as
Assets
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as
Net income
Revenues minus expenses equals
Balance Sheet
The financial statement that reports the assets, liabilities and stockholder's (owner's)equity at a specific date is the
Chart of Accounts
The listing of all of the accounts available for use in a company's accounting system is known as
Expense Matches The Revenues Or Is Used Up
Under the accrual basis of accounting, expenses are reported in the accounting period when the
Service Or Goods Have Been Delivered
Under the accrual basis of accounting, revenues are reported in the accounting period when the
Liability -The company that is to perform the service or is to deliver the product has received the cash in advance and therefore has an obligation (liability) to deliver the service or the product.
Unearned revenues is what type of account
Credited
When a company pays a bill, the account cash will be
Debit
Which term is associated with "left" or "left-side"?
Credit
Which term is associated with "right" or "right-side"?
Debtors
person or country that owes money
Statement of Retained Earnings
reports how the company's retained earnings balance changed from the beginning to the end of the period; shows how much money that a company made was retained and reinvested in the company
Internal Controls
rules and regulations that are put into place to guard the assets owned by a person or a company.