Financial Statement Accounts Flashcards

1
Q

Receivables

A

Money owed to a business by others. Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Accounts Receivables

A

Money owed to a business by customers for goods and services provided on credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Notes Receivables

A

Money owed to business from debtors based on a formal written document stating terms of contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixed Assets

A

Assets with long term useful life used in business operations. Tangible assets or Property Plant & Equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Inventory

A

Goods and materials held by business that are ready or will be ready for sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Good will

A

Intangible asset that arises during acquisition. Amount acquirer pays for the target firm less the target’s fair market value of net assets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Payables

A

Money owed by business to others. Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Accounts Payable

A

Money owed to suppliers for products or services purchased on credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Wages Payable/Accrued Payroll

A

Money owed to employees for hours previously worked.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Notes Payable

A

Money owed to banks or creditors based on a formal written document stipulating the terms of contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Common Stock

A

Shares that represent ownership of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Preferred Stock

A

shares representing ownership of business and rank above common stock. in cases if liquidation, preferred share holders will have claim on earnings before common stock holders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Contributed Capital

A

Money investor paid to buy stock directly from the company. (Stated value of shares + paid in capital). Amount over and above par value paid to the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Additional paid-in capital

A

share holders contribution that exceeds a shares par value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Short-term investment is

A

an Asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Accrued Expenses are

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Debit

A

1) An accounting entry that increases asses, expenses and losses
2) Always on the left-hand side of an account
3) Decreases Liabilities, revenues and owners equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Expenses and Loss accounts

A

1) Equity accounts
2) Debit to expense and loss accounts increases these accounts
3) Owner’s equity decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Credit

A

1) Increase liability, equity, revenue, or gain account
2) Right side of the account
3) Decrease assets and expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If under Assets, cash increases

A

it is listed under debit

21
Q

if under assets, cash decreases

A

it is listed under credit

22
Q

If under Liabilities, accounts payable decreases

A

it is listed under debit

23
Q

If under liabilities, accounts payable increases

A

it is listed under credit

24
Q

If under equity, account decreases

A

it is listed under debit

25
Decrease rent expense
Credit decreases expenses
26
Increase Depreciation
Debit increases expenses
27
Adding up all debits must
equal sum of all credits to keep the accounting equation balanced.
28
Journal Entry
A method to record a transaction
29
What is posting?
Transferring a journal entry to a specific account in ledger is posting to T-Account
30
T-Accounts show
1) Beginning balance of account 2) Debits and Credits 3) Ending Balance of account
31
For equipment maintenance expenses
1) Journal Entry ->Debit expense, Credit ->Accounts Payable (recognize expense immediately as it received maintenance service, records a liability to pay within a month or whatever the term is set to. 2) When cash is actually paid, Accounts Payable -> Debit, Cash->Credit
32
Recording an expense when the inventory is sold
COGS ( Cost Of goods sold) account
33
Matching Principle
Expenses for transaction are recognized at the same time as revenues are recognized.
34
Utilities Expense is an
Operating Expense
35
Owners Equity accounts
Revenue, Expenses, Gains, losses
36
Impact of crediting revenue on Owner's equity
increases owners equity
37
Impact Of debiting expenses on Owner's equity
reduces owners equity
38
When a sale is made
1)cash/accts receivable->debit, revenue->credit | 2cogs->debit,inventory->credit,
39
Example of Payments In Advance
Gift Cards
40
Impact Of Advance payments on Accounting Equation
Assets (Cash increases), Liabilities (obligation to provide goods and services later) increases
41
Unearned Revenue/Deferred Revenue
Liability Account and not a revenue account
42
Journal Entry For Gift Card purchase & Redeem
1) Gift Card purchase=>Cash Debit, Deferred revenue Credit | 2) Gift Card redeem=>Deferred revenue Debit, Revenue Credit
43
Revenue Recognition Journal Entries
1) Cash collected from customer (Debit), Revenue (Credit) 2) Cash not collected/accts receivable (debit), revenue earned (credit). When cash is ultimately paid by customer=> accts receivable(credit), cash (debit) 3)Cash collected from customer (debit), revenue was not earned (Deferred revenue) (credit) After company received good or service (revenue->credit, deferred revenue->debit)
44
Prepaid expenses are not expense accounts but they are
Assets. Example prepaid insurance.
45
Journal Entries for Prepaid Expenses When initially paid
1) Prepaid insurance (Assets) -> Debit | 2) Cash ->Credit
46
Journal Entries to recognize prepaid expense
1) Insurance Expense -> Debit | 2) Prepaid insurance ->Credit
47
Trial Balance is needed to prepare
Balance sheet and Income Statement
48
Trial balance accounts order
1)Assets 2)Liabilities 3)Equity 4)Revenue and Expense
49
Impact of interest on Notes Payable on Trial Balance
1)Accrued Interest Liability (credit) 2)Interest Expense (Debit)