Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200...

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Deferral Adjustments Other Terms Review Potpourr i $100 $100 $100 $200 $200 $200 $300 $300 $300 $400 $400 $400 $500 Accounting Process $400 $100 $200 $300 $500 Accrual Adjustments $100 $200 $300 $400 $500 $500 $500

Transcript of Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200...

Page 1: Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500 Accounting.

Deferral Adjustments

Other Terms

Review Potpourri

$100 $100 $100

$200 $200 $200

$300 $300 $300

$400 $400 $400

$500

Accounting Process

$400

$100

$200

$300

$500

Accrual Adjustments

$100

$200

$300

$400

$500 $500 $500

Page 2: Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500 Accounting.

Deferral Adjustments - $100

Type of adjustments used for updating accounts. Involves previously recorded transactions.

What are Deferral Adjustments?

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Deferral Adjustments - $200

The type of account (balance sheet or income statement) that a deferral adjustment causes to decrease.

What is “balance sheet”?

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Deferral Adjustments - $300

The accounts affected when a physical count discovers that $50 of supplies were used in the period.

What are Supplies Expense (increase, debited) and Supplies (decrease, credited)

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Deferral Adjustments - $400

Accounts affected when $200 of prepaid insurance is used up during the period.

What are Insurance Expense (increase, debited) and Prepaid Insurance (decrease, credited)?

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Page 6: Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500 Accounting.

Deferral Adjustments - $500

The accounts affected when part of the cost of property and equipment are expensed in accordance with the matching principle.

What are Amortization Expense (increase, debited) and Accumulated Amortization: Property and Equipment (increase, credited)

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Accrual Adjustments - $100

Type of adjustment used to include transactions that were not previously recorded.

What are Accrual Adjustments?

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Accrual Adjustments - $200

Direction that the accounts in an accrual adjustment change relative to each other (same or opposite direction).

What is “the same direction”? (i.e., increases in assets correspond with increases in related revenue accounts; increases in liabilities correspond with increases in expenses)

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Page 9: Deferral Adjustments Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200 $300300$300300$300300 $400400$400400$400400 $500500 Accounting.

Accrual Adjustments - $300

Accounts affected when you record interest earned but not yet received.

What are Interest Receivable (increase, debited) and Interest Revenue (increase, credited)?

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Accrual Adjustments - $400

This adjustment should be made after adjusting all other revenue and expense accounts because the amount of this adjustment depends on the adjusted revenues and expenses.

What is the adjustment for Income Tax Expense and Income Taxes Payable?

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Accrual Adjustments - $500

One account NEVER involved in adjusting journal entries.

What is the Cash account?

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Accounting Process - $100

A list of all accounts and their adjusted balances to check on the equality of recorded debits and credits; prepare after the AJEs are posted.

What is the Adjusted Trial Balance?

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Accounting Process - $200

An internal report prepared before AJEs are prepared.

What is “unadjusted trial balance”?

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Accounting Process - $300

DAILY DOUBLE!!!

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Accounting Process - $400

Completed as the last step in the accounting cycle to check for equality of debits and credits, and to ensure that all temporary accounts have been closed.

What is the Post-Closing Trial Balance?

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Accounting Process - $500

After all temporary accounts have been closed, the balance in the Retained Earnings account agrees with the number calculated on this financial statement.

What is the Statement of Retained Earnings?

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Other Terms - $100

These accounts track financial results from year to year by carrying their ending balances into the next year.

What are Permanent Accounts?

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Other Terms - $200

This account records the total amount of amortization recorded against an asset since its purchase.

What is Accumulated Amortization?

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Other Terms - $300

Entries used at the end of each accounting period to update and include all revenues and expenses of that period.

What are Adjusting Journal Entries?

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Other Terms - $400

Accounts immediately affected by the declaration of dividends.

What are Dividends Declared (increase, debited) and Dividends Payable (increase, credited)?

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Other Terms - $500

An account that is offset to, or a reduction of, another account.

What is a Contra-Account?

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Review Potpourri - $100

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The general category of transactions that cause a decrease in Net Income.

What are expenses?

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Review Potpourri - $200

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The point at which expenses are incurred.

What is “when economic benefits of an item are used up in the current period”?

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Review Potpourri - $300

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Two equalities that must be maintained for every transaction.

What is debit=credit and A=L+SE?

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Review Potpourri - $400

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The policy that explains when a company reports revenues as earned.

What is “Revenue Recognition Policy”?

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Review Potpourri - $500

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The requirement that expenses be recorded in the period in which they are incurred to generate revenue.

What is the Matching Principle?

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Daily Double Specify Your Wager!

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Accounting Process ---

Accounts of this type are closed to permanent accounts at the end of each fiscal year.

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What are Temporary Accounts?