accounting top hat
At March 1, 2018, Oscorp. had supplies on hand of $1,500. During the month, Oscorp purchased supplies of $2,900 and used supplies of $2,800. The March 31 balance sheet should report what balance in the supplies account?
1,600
Accounting definition
Accounting is a system of *analyzing, recording, summarizing, and reporting* the results of a business's activities
What would be the debit for the journal entry regarding a customer paying off a balance that they owe our company on account?
Accounts Receivable
Which of the following is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance
Adjusting Trial Balance
If total liabilities decreased by 4,000, then
Assets must have decreased by $4,000, or stockholders' equity must have increased by $4,000
Dividends would be reported on which financial statement
Balance sheet
If a check correctly written and paid by the bank for $628 is incorrectly recorded on the company's books for $682, the appropriate treatment on the bank reconciliation would be to
Credit $54 from the book's balance
Christian Wolff has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Christian make?
Debit Accounts Receivable and credit Service Revenue
Link earned a salary of $500 for the last week of October. He will be paid on November 1 by his employer (The Royal Family of Hyrule). The adjusting entry for Link's employer October 31 is:
Debit Salaries and Wages Expense 500 Credit Salaries and Wages Payable 500
accrual
Doing the action before the money is provided
What is the correct journal entry to record receiving inventory and paying for it at a later time?
Dr. Inventory Cr. Accounts Payable
What category of asset would include a building that is not currently being used
Investment Asset
What type of account is deferred revenue and upon which financial statement would it be located
Liability; balance sheet
retained earnings
Net Income - Dividends
In 2018 Cyberdine Systems, Inc. made the following closing entry:Dr. Retained EarningsDr. RevenueCr. ExpensesAs a result of its "Termination business," did Cyberdine have a net loss or net income
Net Loss
Net income/ loss
Revenues - Expenses
cash basis
accounting records revenues when cash is received and expenses when cash is paid
depreciation
allocating the cost of buildings, vehicles, and equipment to the accounting periods in which they are used
A receivable is always an ______.
asset
PPE (Property, Plant, and Equipment)
assets with relatively long useful lives that are currently used in operating the business, physical substance ( ex. land, building, equipment)
Stockholders' Equity
capital given to a company by shareholders in exchange for stock owners claim to business resources
The deferral adjusting entry to record the amount of deferred service revenue that is now earned includes a
credit to Accounts Receivable
A payable is always a _________.
liability
deferred revenue (key words)
paid in advance, service provided later
Cash (key words)
paid, borrow, received cash
Accrual Basis Accounting
reports revenues and expenses when services are provided regardless of when cash is received or paid
Revenue Recognition Principle
revenues are recognized when seller provides goods/ services to its customers in the amount the seller expects to be entitled to receive
service revenue (key words)
service performed, paid later, sent invoice
Common Stock (key words)
shares, stock, issued
Notes payable (key words)
signed a note/ borrowed from the bank
Accumulated Depreciation
the total amount of depreciation expense that has been recorded since the purchase of a plant asset
