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
