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Accounting 201
Exam 1 Review
22
Accounting
Undergraduate 2
02/06/2012

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Cards

Term
GAAP
Definition
Generally Accepted Acc. Principles-Rules accountants follow.
Term
Who writes GAAP?
Definition
Security Exchange Commission
Term
What is an asset?
Definition
Future value
Term
Acc. Equation
Definition
Assets=Liab. + Stock Equity
Term
What increases SE?
Definition
Revenue, Net Income, Retained Earnings and Common Stock
Term
Acc. Rec. is collected...
Definition
Cash(Debit) Acc. Rev. (Credit)
Term
Payment of Dividends...
Definition
Dividends(Debit) Cash(Credit)
Term
Compute Retained Earnings
Definition
Beg. Retained Earnings+Revenue-Expenses
Term
What does a Balance Sheet show?
Definition
Assets, Liabilities and Stock. Equity
Term
Financial Statement not covering a period of time...
Definition
Balance Sheet
Term
Right side of account is called?
Definition
Credit
Term
What is a T-Account?
Definition
Represents a general ledger account
Term
Normal balance of Assets, Dividends and Expenses
Definition
Debit
Term
Normal balance of Common Stock, Liabilities, Revenue, Retained Earnings
Definition
Credit
Term
Record the purchase of Supplies on account...
Definition
Supplies (Debit), Acc. Payable (Credit)
Term
Trial Balance does what?
Definition
Debits and Credits MUST equal
Term
What is the sequence of recording?
Definition
Analyze, Journalize, Post
Term
What is a Journal?
Definition
Book of Original Entries. Chronological with both the give and get.
Term
Time Period Assumption
Definition
Adjusting entries area must for all to make sense
Term
What is the Revenue Recognition Principle?
Definition
Revenue is recognized when it is EARNED
Term
When is revenue earned in a service business?
Definition
When service is provided
Term
What are the two classifications of adjusting entries?
Definition
Accruals and Deferrals
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