FA Chapter 5 Flashcards
1
Q
Unadjusted Trial Balance
A
- A listing of individual accounts, usually in financial statement order.
- Ending debit or credit balances are listed in two separate columns.
- Total debit account balances should equal total credit account balances
2
Q
Partial Trial Balance
A
Just a WORK paper (Ex. Do my debits and credits equal?)
3
Q
Matching Principle
A
Because transactions occur over time, ADJUSTMENTS are required at the end of each fiscal period to get the revenues and expenses into the “right” period.
4
Q
Interest is always
A
Per Year
5
Q
Do adjusting entries have cash?
A
NO
6
Q
Deferred Revenues
A
Cash in Advanced, Liabilities Reduced
7
Q
Accrued Revenues
A
Revenues earned, not recorded until goods or services delivered
8
Q
Deferred Expenses
A
Recorded assets paid with cash that need to be reduced because of use of asset
9
Q
Accrued Expenses
A
expenses incurred, not recorded till cash is paid after the goods or services used
10
Q
Temporary Accounts…
A
Need to be closed
