lec 3

Question 1

what statement will dividends declared be

Answer 1

in the statement of change in equity

Question 2

debit and credit total amounts

Answer 2

what ever one is larger is the side you put the balance

Question 3

what is the normal balance for assets

Answer 3

debit

Question 4

liabilities normal balance

Answer 4

credit

Question 5

shareholders equity normal balance and expense and dividends

Answer 5

credit for common shares, retained earnings and revenues but debit for expenses and dividends

Question 6

what is notes payable

Answer 6

similar to accounts payable just with a longer terms

Question 6

what is notes payable

Answer 6

similar to accounts payable just with a longer terms

Question 7

what distincts inventory from assets

Answer 7

inventory and supplies fall under

Question 8

how would you list a purchase of an asset in a buisness

Answer 8

you would debit the asset and then credit the amount of the asset from the cash account

Question 9

how to journal debit

Answer 9

its the first one and its left justified

Question 10

how to journal credit

Answer 10

it’s the second one and will always be indented

Question 11

what is the general ledger

Answer 11

it contains all the assets, liabilities and shareholders equity.

Question 12

what is the general ledger

Answer 12

it contains all the assets, liabilities and shareholders equity.

Question 13

what is posting

Answer 13

moving the information from the journal to the general ledger

Question 14

when would you record revenue for a service business

Answer 14

when the service is prefomed

Question 15

when would you record revenue for merchandise

Answer 15

when the merchandise is delivered or given to the customer

Question 16

how would you record a service when the service occurs over a period of time

Answer 16

you would divide the amount by either the days/months/years that the service is being performed

Question 17

what are the 5 revenue recognition criteria

Answer 17

identify the contract, identify performance obligations, determine the transaction price, allocate the transaction price and recognize the revenue

Question 18

what type of activity is paying dividends

Answer 18

finacing activity

Question 19

what is a contra asset account

Answer 19

its a account that lowers the balance of a asset

Question 20

what is a example of a contra asset account

Answer 20

accumlated depreciation

Question 21

what is the contract based approach for revenue

Answer 21

its only looking at the value of the contracts and sales that the organization signs nothing else matters

Question 22

what would be the effect of paying off a purchase made on accoutn

Answer 22

a decrease in accounts payable

Question 23

what is a closing entry

Answer 23

its a entry that resets the temporary accounts to zero and updates the balance in retained earnings

Question 24

what is the name of a organization whos shares are held by a small number of indivisuals

Answer 24

privately held corporation

Question 25

what would accounting systems chart of accounts include

Answer 25

a numerical identifier

Question 25

what would accounting systems chart of accounts include

Answer 25

a numerical identifier

Question 26

what are the two types of adjusting entries

Answer 26

accrual and deferral

Question 27

what is a accrual entry

Answer 27

when the revenue or a expense needs to be recongnized before the cash is recived or paid

Question 28

what is a deferral entry

Answer 28

when the revenue or expense is recognized after the cash is recived or paid

Question 29

how to do the interest payment amount for a portion of the year

Answer 29

the amount borrwoed times the percentage then time the amount of months over 12

Question 30

how does accrual accounting work

Answer 30

it records the revenue when the service is preformed even if the cash isn’t received