Module 4 Flashcards
What are adjusting entries?
They match costs and expense with revenue
What does accrue mean?
It is to recognize a cost
What does defer mean?
It is to put off recognizing the cost
How many types of AJE are present?
4 types of AJE
Adjust deferred costs
recognizing expense where cash was previously paid and recorded
Accrue expenses
recognizing expense before cash is paid
Accrue revenue
recognizing revenue before cash is received
Adjust deferred revenue
recognizing revenue where cash was previously received and recorded
How do we record Depreciation?
The Accumulated Depreciation account normally has a credit balance and appears in the balance sheet as a deduction from the related asset amount
What is (Cost - Accumulated Depreciation)?
are the assets’ book values after depreciation hits them. If you were to sell your phone now.
How do we expense fees paid before delivery?
Unearned Revenue and when delivered cr revenue and dr unearned revenue
What is the purpose of a trial balance?
To ensure that debit and credit add up equally
3 sections in a cash flow statement?
Operating, Investing and Financing Activity
