ACC- 120 sw2016

Card Set Information

ACC- 120 sw2016
2016-05-04 14:31:33
ACC 120
CPCC Class
Show Answers:

  1. What are the 5 types of categories in accounting?
    • 1, Assets - things you own, also has future value 
    • 2, Liabilities
    • 3, Stockholders Equity - Contributed Capital or Retained Earnings 
    • 4, Revenue - worked earned 
    • 5, Expense - Cost
  2. What are the 3 parts of the Balance Sheet?
    • 1, Assets
    • 2, Liabilities
    • 3, Stockholders Equity
  3. What are the 4 parts of the Retained Earnings?
    • 1, the total amount of Retained Earning from the previous month.
    • 2, The Net Income from the Income Statement.
    • 3, Dividends (which you should subtract)
    • 4, The Balance for the month.
  4. What are the 3 parts of an Income Statement?
    • 1, Revenues
    • 2, Expenses
    • 3, Net Income
  5. What are the 4 parts a a Financial Statement and what are their connection?
    1, Income Statement- The Net income from the Income Statement is transferred to the Retained Earning sheet.

    2, Retained Earnings- The Retained Earning amount is transferred to the Balance Sheet.

    3, Balance Sheet- The Cash on the Balance Sheet needs to match the Cash on the Statement of Cash Flow.
  6. What are the 4 parts a a Financial Statement
    • 1, Income statement 
    • 2, Statement of Retained Earnings
    • 3, Balance Sheet
    • 4, Statement of Cash Flow
  7. What are the two groups that accounting is broken down into?
    1- Financial Accounting: External Use (creditors, investors)

    • 2- Managerial Accounting: Internal Use
    • ( managers, supervisors)
  8. What are the 5 accounts of Accounting?
    • 1, Assets
    • 2, Liabilities 
    • 3, Stockholder's Equity
    • 4, Revenue
    • 5, Expenses
  9. What are the CR and DR of those accounts and what type of?

    *Think of the Hand*
    1, Assets Up with a DR and down with a CR

    • 2,  Liabilities up with a CR and Down with a DR
    • 3, Stockholders Equity up with a CR and down with a DR
    • 4, Revenues up with a CR and down with a DR
    • 5, Expenses  up with a DR and down with a CR
  10. What two accounts increase with a DR and decrease with a CR
    Assets and Exspenses
  11. what three accounts increase with a CR and decrease with a DR
    Liabilities, Stockholders Equity, and Revenues
  12. how do you increase and decrease with a Asset
    up with DR and down with a CR
  13. how do you increase and decrease with a Liabilities
    up with CR and down with a DR
  14. how do you increase and decrease with a Stockholders equity
    up with a CR and down with a DR
  15. how do you increase and decrease with a Revenues
    up with a CR and down with a DR
  16. how do you increase and decrease with a Expenses
    up with a DR and down with a CR
  17. What is an Asset?
    • - benefits the company by producing cash flow or reducing cash flow
    • (EXP)
    • cash, supplies, equipment, tables, chairs
  18. what are Liabilities
    • - measurable amounts that the company owes to creditors
    • (EXP)
    • 1, Notes payable - money borrowed from a       bank
    • 2, Accounts Payable - promising to pay for       goods at a later date. 
    • 3, Wages Payable - wages owed to                   employees
  19. what is Stockholders Equity?
    Represents the owners claim on the business.

    • the two types of Equity are:
    • 1, Contributed Capital- buying stocks of the         compay
  20. Which of the 4 financial statements which is a permanent account?

    meaning show from the past years
    Balance Statement
  21. When making the balance sheet what do you start with?
    You start on top with is most easiest liquidated I.E. CASH
  22. What are the two types of Assets
    • 1, Current Assets
    • 2, Long Term Assets
  23. what are some types of Current Assets
    • 1, cash
    • 2, accounts receivable
    • 3, inventory
    • 4, office supplies
  24. What are the two types of Liabilities
    • 1, Current Liabilities
    • 2, Long term Liabilities
  25. what are some types of current liabilities
    • 1, Accounts Payable
    • 2, Salaries Payable
    • 3, Taxis Payablr
  26. whats the goal of a trail balance?
    That D = C
  27. What is the definition of a revenue
    Increase in assets or settlements of liabilities arising from ongoing operations.
  28. what's the def of expenses
    All cost of doing business that are necessary to earn rev.
  29. What two parts make up the Income Statement
    • 1, Revenue
    • 2, Expense 

    Rev - Exp = Income Statement
  30. what are the balances of each account
    • Assets = Debit Balance
    • Liabilities = Credit Balance
    • Owner's Equity = Credit Balance
    • Revenue = Credit Balance
    • Expense = Debit Balance
  31. Transactions
    An event or activity that has a direct and measurable financial effect on the asset, liabilities, or stockholders equity of the business.
  32. Classified Balance Sheet
    A balance sheet that shows a subtotal for Current assets and current liabilities
  33. how do you increase retain earning
    • 1- net income
    • 2- investments / stocks
  34. If you don't put the interest rev on the income statement what is understated?
    both a asset and a rev are understated
  35. how do you find the book value?
    the cost of the building + accumulated depreciation = book / carrying value
  36. what if there is an unearned rev account and there is no adjusting entry made to record the rev earned?
    make an adjusting entry to supplies
  37. If you don't record income tax exp is the Income statement over or under stated?
  38. accrual accounting
    reports revenues when they are earned and expenses when they are incurred, regardless of the timing of cash receipts or payment