quiz 1- review Flashcards
define normal balance
the side (either Debit or Credit) where increases are recorded to an account
normal balance of the 6 accounts
assets- DR
liabilities- CR
revenue- CR
expenses- DR
capital- CR
withdrawals- DR
accounting formula
A= L+ [(OE-W/D)+(Rev-Exp)]
closing entries (3)
only temporary accounts
closed off
0 balance for the new yr
steps for the closing entries (4)
- close REVENUES to income summary account
- close individual expenses to income summary account
- close income summary account to capital account
- close drawings account to capital account
first half of the accounting cycle (6)
analyze transactions
journalizing
posting to the general ledger
unadjusted trial balance
journalizing adjusting entries
post adjusting entries
SECOND half of the accounting cycle (6)
adjusting trial balance
financial statements
journalized closing entries
post-closing entries
post-closing trial balance
reversing entries
salaries EXPENSE or any other EXPENSES fall into which?
Assets
Liabilities
Owner’s equity
Owner’s equity
either Dr or Cr
1. capital account
2. Accumulated depreciation
3. fees earned
4. Prepaid insurance
- Cr
- Cr
- Cr
- Dr
How many people in a partnership?
2-20
Allowance for DOUBTFUL accounts is a contra asset to _______
Accumulated DEPRECIATION is a contra asset to _______
account receivable
fixed assets
what is VS book value (3)?
Appraised value
Market Value
Agreed upon value
the division of income (table) comes at the BOTTOM to the ___________
income statement
When the remaining income is a negative number what does it mean?
Allowances EXCEED Net Income….they still made a PROFIT
For LLC
For Partnership
Member equity
capital
