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acct chapter 3

The flashcards below were created by user abifulco on FreezingBlue Flashcards.

  1. debit and credit
    • debit = left
    • credit = right
  2. double-entry accounting system
    credits = debits
  3. assets =
    liabilities + stockholder's equity (CS + Rev - Divd + rev - Exp)
  4. first 5 steps in accounting cycle
    • 1. analysis of transactions and selected other events/identification and measurement of transactions
    • 2. journalization
    • 3. posting
    • 4. trial balance preparation
    • 5. adjustments
  5. last 5 steps in accounting cycle
    • 6. adjust trial balance
    • 7. statement preparation
    • 8. closing
    • 9. post-closing trial balance (optional)
    • 10. reversing entries (optional)
  6. temporary accounts
    revenues, expenses, dividends
  7. permanent accounts
    assets, liabilities, stockholders' equity (common stock and retained earnings)
  8. in closing nominal accounts:
    in closing temporary accounts
    • reduces the balance of nominal
    • accounts to zero
  9. prepaid expense
    expenses paid in cash and recorded as assets before they are used or consumed
  10. unearned revenues
    revenues received in cash and recorded as liabilities before they are earned
  11. supplies used is? supplies used to run business is?
    • 1. expense
    • 2. asset
  12. revenues result in a ? to a liability account and a ? to a revenue account
    • 1. debit (decrease)
    • 2. credit (increase)
  13. book value
    cost - accumulated depreciation
  14. accrued revenue
    revenues earned but not yet received in cash or recorded
  15. accrued expenses
    expenses incurred but not yet paid in cash or recorded
Author
abifulco
ID
35152
Card Set
acct chapter 3
Description
acct chapter 3 rest of chapter
Updated
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