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MIdterm Prep > Busi 101 > Flashcards

Busi 101 Flashcards

1
Q

The father of double entry bookkeeping

A

Luca Pacioli

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2
Q

The group that primarily determines how accounting is practiced in the US

A

FASB

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3
Q

Which statement covers a point in time?

A

Statement of Retained Earnings

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4
Q

Assets and Liabilities equation

A

Assets=Liabilities + Owners equity

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5
Q

A debit increases the balance of?

A

Assets and Dividends

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6
Q

A credit decreases the balance of

A

Expenses and Dividends

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7
Q

Which of the following is an example of a real/permanent account? Dividends, Rent Revenue, Gain on sale of land, Prepaid Insurance, Supplies Expense

A

Prepaid Insurance

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8
Q

Which of the following is an example of a nominal/temporary? Accumulated Depreciation, Interest Revenue, Prepaid Rent Expense, Interest Payable, Available for Sale Securities

A

Interest Revenue

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9
Q

What’s an example of a deferral?

A

Unearned Revenue, Prepaid Interest Expense

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10
Q

What’s an example of an accrual?

A

Dues Payable

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11
Q

The adjusting entry for the expiration of a prepaid expense involves a?

A

Expense Account and an Asset Account

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12
Q

The adjusting entry for the earning of revenue received in advance involves a?

A

Debit to Liability and

Credit to Revenue

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13
Q

The adjusting entry for recognition of accrued expense involves a?

A

Expense Account and

Liability Account

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14
Q

The adjusting entry for recognition of accrued revenue involves a?

A

Debit to Asset and

Credit to Revenue

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15
Q

Equation for Working Capital

A

Current Assets - Current Liabilities

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16
Q

Current ratio formula

A

Current Assets / Current Liabilities

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17
Q

In a bank reconciliation outstanding checks are

A

Subtracted from the bank balance

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18
Q

In a bank reconciliation an EFT collection listed on the bank statement is…

A

Added to the book balance

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19
Q

In a bank reconciliation, the difference between a check written that is erroneously recorded as less should be…

A

Added to the book balance

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20
Q

Unrealized gains or losses on “available for sale” securities are reported on the…

A

Balance Sheet

21
Q

The “allowance for uncollectible accounts” is a…

A

Contra Asset and a

Permanent Account

22
Q

Under the allowance method of accounts receivable, the write off entry for an account…

A

Has no effect on total assets

23
Q

uncollectible accounts credit is an expense?

A

no

24
Q

uncollectible accounts debit is an expense?

A

yes

25
Q

The failure to record the adjusting entry for the expiration of prepaid insurance at year end would understate

A

Expenses

26
Q

The failure to record the adjusting entry for the earning of (unearned revenue) would understate

A

Liabilities

27
Q

Recording the adjusting entry for accrued interest receivable by debiting an asset and crediting a liability would understate

A

Revenue, Net Income and Owner’s Equity

28
Q

Recording the adjusting entry for depreciation by debiting an expense account and crediting a liability would have no effect on

A

Owners Equity

29
Q

Recording the adjusting entry for accrued wages payable by debiting an asset and crediting a liability would overstate

A

Net Income and Assets

30
Q

Recording the adjusting entry for accrued interest payable on monies borrowed by us by debiting assets and crediting revenues would misstate

A

Total Revenue,
Total Expense
Total Assets
Total Liabilities

31
Q

Debit assets does what

A

Increases assets

32
Q

Credit assets does what

A

Decreases assets

33
Q

Debit Liabilities and Owners equity does…

A

decreases

34
Q

Credit Liabilities and Owners equity does…

A

Increases

35
Q

Debit expenses

A

increases expenses

36
Q

credit expenses

A

decreases expenses

37
Q

debit revenues

A

decreases revenues

38
Q

credit revenues

A

increases revenues

39
Q

What are the three things that increase when credited?

A

Liabilities
Owners equity
Revenue

40
Q

What are the two things that decrease when debited

A

Assets and Expenses

41
Q

What is the accrual salary formula?

A

Salary expense = ending cash + difference in salary payable

42
Q

What is the accrual service revenue formula?

A

Revenue = ending cash + difference in unearned revenue

43
Q

What is the accrual Dues revenue formula?

A

Cash for dues - change on dues

44
Q

What is the cash from rent formula?

A

Rent Revenue - ending Prepaid Rent

45
Q

What is the cash paid for rent formula?

A

Rent expense - change in prepaid rent - change in rent payable

46
Q

Cash basis formula

A

Cash received - cash paid

47
Q

Accrual net income formula

A

Revenue - Expense

48
Q

Big 5

A 
Andersen Worldwide
Ernst and Young
Deloitte Touche
KPMG
PricewaterhouseCoopers

MIdterm Prep (2 decks)

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