INTRO TO ACCOUNTS Flashcards
What are the six account types?
1) Assets
2) Liabilities
3) Stockholder’s equity
4) Expenses
5) Revenue
6) Dividends
What are the four characteristics in Assets?
1) Balance Sheet
2) Real ( Permanent accounts are not closed per year)
3) Dr NAB
4) Contra ( NAB is Cr)
What are the four characteristics in Liabilities?
1) Balance Sheet
2) Real
3) Cr NAB
4) Contra ( NAB is Dr)
What are the four characteristics in Stockholders’s equity?
1) Balance Sheet
2) Real
3) Cr NAB
4) Contra ( NAB is Dr)
What are the four characteristics in Revenues?
1) IS
2) Nominal ( Temporary accounts are closed per cycle)
3) Cr NAB
4) Contra ( NAB is Dr)
What are the four characteristics in Expenses?
1) IS
2) Nominal
3) Dr NAB
4) Contra ( NAB is Dr)
What are the four characteristics in Dividends?
1) RE Stmt
2) Nominal
3) Dr NAB
no contra
What is the Accounting Equation
A= L + SE
Define Asset
Probable future economic benefit that is obtained or controlled by a particular entity from past transactions or events
Define Liabilities
Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
Define Stockholders’ equity
The net assets or residual interest in the assets of an entity that remains after deducting its liabilities.
What is Stockholders’s equity equation?
SE = Contributed Capital + Retained Earnings + Accumulated Other Comprehensive Income
What is Ending Retained Earnings’s equation?
Ending RE = Beginning RE + Revenues + Gains - Expenses - Losses - Dividends Declared
RE exceeds expenses, losses, and div is a positive
RE does not exceed expenses, losses, and div is a deficit.
