Final Flashcards
If a company fails to make an adjusting entry to estimate uncollectable accounts, then this error
Overstates net income
Prepaid expense
An item of goods or services purchased by the company for use in its operations but not fully consumed by the end of the accounting period
Adjusted trial balance
Proves the equality of the debit balances and credit balances after all adjusting entries have been recorded
Which statement is true of the statement of stockholders equity
Shows a company’s stock issuances and dividends paid to shareholders
What accounts are affected by an adjusting entry that recognizes that services to patients have been earned, but not billed
Increases in AR and Service Rev
Fasb
Created gaap appointed by sec primary accounting sitting body
Statement of cash flows
Add and subtract cash
Deferral and accrual
D paid before
A paid after
Steps for worksheet
Trial balance Adjustments Adj trial balance Income statement Balance sheet
How to close out accounts
Close rev and exp Rev RE RE Exp
Accounting cycle
Analyze business trans Journalize trans Post to ledger Prepare trial balance Journalize and post adjusting entries Prepare adj trial bal Prepare fin statements Journalize and post closing entries Prepare post closing trial balance
Fob shipping point
Title transfers at shipping point
Fob destination
Title transfer when arrives
Income statement approach for bde
Net credit by %
When would ada be debited
When your write someone off
