accounting 5

A condition in which a company's expenses exceed its revenues. What does that mean:

A loss

Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability.

Account payable

Which accounts belong to Permanent Accounts ?

Asset, liability, owner capital

Accounts receivable that may become uncollectable and will be written off , is known as:

Bad debts

The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation is definition of:

Book value

Which is the process that resets revenue, expense and withdrawal account balances to zero at the end of the period

Closing process

On June 1, 2010, The company paid $1,000 cash for the loan owing the bank before. Recording this transaction.

Credit cash and debit loan

The company buys a new building for personal use is recorded with below entry:

Credit cash and debit withdrawal

The company buys a new car for personal use is recorded with below entry:

Credit cash and debit withdrawal

Which accounts don't need to do closing entries?

Current asset, Non - current asset, Current Liability, Non - current Liability, Intangible asset , Gross profit

Borrow $ 1,000 loan to pay for new equipment of the company is recorded with:

Debit equipment and credit loan

A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first. What is it?

FIFO

Calculated as sales minus all costs directly related to those sales. It is about:

Gross profit

The special account used only in the closing process to temporarily hold the amounts of

Income Summary account.

Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent is the definition of:

Intangible assets

Costs included in the Merchandise Inventory account can include:

Invoice price minus any discount, Transportation-in, Storage, Insurance

A method of valuing inventory in which the items acquired last are treated as the ones sold first. What is it?

LIFO

Which is true about account receivable:

Money which is owed to a company by a customer for products and services provided on credit.

Items used in business operations, such as office pens and paper are several samples of:

Office supplies

Which accounts belong to Temporary Accounts?

Revenue, expense, withdrawal, income summary

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

Specific identification method.

Book value is equal to:

Total asset minus depreciation expense

Which accounts used to record amounts owed to suppliers for products or services purchased on credit?

Trade accounts payable