cummulative Flashcards
accumulated depreciation is
a contra-asset
allowance for uncollectables is
contra to accounts recievable
when do you recognize revenue
when the service is provided
JE for bonds
Debit cash credit bonds payable`
accounting equations
A = L + SHE
income statement
revenue - expenses = net income
common stock is made of
beginning balance of CS + issues CS = ending CS
retained earnings is made of
Beginning RE + net income - dividends = ending RE
what happens after an increase in expenses/dividends
decrease in SHE
what happens after a increase in revenue
Increase SHE
what is a balance sheet made of
current/long term assets, current/ling term liabilities and SHE
borrowing money
Notes receivable/payable
what account is deferred revenue
liability
journal entry for deferred revenue
1) debit cash, credit def rev
2) debit def rev, credit serv rev
journal entry for deferred expenses
1) debit supplies, credit cash
2) debit supplies exp, credit supplies
journal entry for prepaid rent
1) debit pre paid rent, credit cash
2) debit rent expense, credit pre paid rent
when do we recognize revenue
when we earn it
what is the matching principle
match expenses with revenue
when do we match expenses and revenue
in the proper period the expenses incurred
what is on the bank balance side
outstanding checks, outstanding deposits, bank error
what is on the book balance side
NSF checks, bank service fees, interest revenue, utility expense
how do you write off for a uncollectable
debit AUA, credit A/R
how does preferred stock affect financial statements?
deducted on the income statements
debt to equity ratio
stock price / earnings per share
what kind of changes are conservative
Changes resulting in lower revenues or higher expenses
yuh
yuh
