lec 4

Question 1

what are some of things that make finacial information useful

Answer 1

verifiablility, understandability, comparability

Question 2

how do you record depreciation

Answer 2

you take the total cost of the good and divide it by the useful life of the product

Question 3

what are the nine steps of the accounting cycle

Answer 3

1. analyze business transactions
2. journalize the transactions
3. post to ledger accounts
4. prepare a trial balance
5. journalize and post the adjusting entries
6. prepare a adjusted trial balance
7. prepare financial statements
8. journalize and post closing entries
9. prepare a closing trial balance

Question 4

what are prepaid expeneses

Answer 4

expenses paid wither before you get the suppliers or right when you get it and is recorded as a asset before there used

Question 5

accrued expenses

Answer 5

its getting a expense but not paying it till later (buying something on credit)

Question 6

what is unearned revenue

Answer 6

its getting money before you give a good or serivce ( think of deposits or like loading money into the starbucks app)

Question 7

what is accrued revenue

Answer 7

it’s getting revenue but you haven’t got cash yet ( so the customer is getting the good on credit)

Question 8

how to take the depreciation of something

Answer 8

purchase price - the end of life value divided by useful life of the thing