1.4.1 Accounting Cycle

Question 0

General Rule of Expenses

Answer 0

Spend money maintenance & expected cost maintaining asset

Question 1

The Accounting Cycle (start up company w/ 1st set transactions)

Answer 1

1) Analyze transactions (during period)
2) Journalize & Post (end of period) ->
Unadjusted trial balance
3) Record adjusting entries (adjusting trial balance)
4) Record Financial Statements
5) Record Closing Entries - > start new period & begin from 1) again.

Question 2

General rule Assets

Answer 2

Spend money capital improvement & increasing value of building.

Question 3

General Rule Inventory

Answer 3

Only used goods you buy w/ intention selling ASAP (vs reusable equipment part production)

Question 4

Adjusted Trial Balance

Answer 4

• summarizes balanced each account after adjusting entries.

- used make financial statements

Question 10

Post

Answer 10

Journal entries posted to T-Account/General Budget