Special Purpose

Question 1

Accrual to cash
What can you add to net income

Answer 1

Decrease in receivables
Increase in payables

Question 2

Accrual to cash
What do you deduct

Answer 2

Increase in receivables
Decrease in payables

Question 3

Cash payment to accrual expense
Debit what

Answer 3

Increase to prepaid
Decrease in payable

Question 4

Cash payments to accrual expense
Credit what

Answer 4

Decrease to prepaid
Increase to payable

Question 5

Cash to accrual net income
Add what

Answer 5

Increase in receivables & prepaid
Decrease payables

Question 6

Cash to accrual net income
Deduct what

Answer 6

Decrease in receivables & prepaids
Increase to payables

Question 7

Balance sheet is known as

Answer 7

Statement of assets and liabilities arising from “form of method”

Question 8

Cash basis income statement

Answer 8

Statement of cash receipts and disbursements

Question 9

Modified cash basis income statement

Answer 9

Statement of revenues collected and expenses paid - modified cash

Question 10

Income tax income statemnt

Answer 10

Statement of revenue and expenses - income tax

Question 11

Accrual to cash net income add

Answer 11

Increase in payables
Decrease prepaid assets

Question 12

Accrual to cash net income subtract

Answer 12

Increase in prepaid assets
Decrease in payables

Question 13

Accrual to cash expenses add

Answer 13

Increase in prepaid expense
Decrease accrued paybales

Question 14

Accrual to cash expense subtract

Answer 14

Increase in accrued payables
Decrease in prepaid expenses