Term
| How to calculate Net Income/Net Loss |
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Definition
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Term
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Definition
| Liabilities + Owner's Equity |
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Term
| What kind of account is equipment? |
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Definition
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Term
| What kind of account is Capital? |
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Definition
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Term
| What kind of account is accounts receivable? |
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Definition
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Term
| What kind of account is notes payable? |
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Definition
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Term
| What kind of account is service revenue? |
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Definition
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Term
| Purchased equipment on credit would do what? |
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Definition
| Increase an asset and increase a liability |
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Term
| A company performed services for a customer and immediately received cash. How would this transaction be recorded? |
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Definition
| Increase Cash and increase Revenue |
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Term
| What is presented on the balance sheet? |
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Definition
| Assets = Liabilities + Owner's Equity |
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Term
True or False?
The income statement shows the revenues minus expenses of the company for a period of time |
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Definition
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Term
True or False?
Revenue is only recorded when cash is received |
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Definition
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Term
| A company purchased equipment on credit. Which account would be debited? |
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Definition
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Term
| A company purchased equipment on credit. Which account should be credited? |
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Definition
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Term
| A company performed services for a customer and collected cash immediately. What account should be debited? |
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Definition
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Term
| A company performed services for a customer and collected cash immediately. What account should be credited? |
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Definition
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Term
| A company paid for equipment that was previously purchased on account. In other words, they paid for the equipment that was purchased. What account should be debited? |
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Definition
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Term
| A company paid for equipment that was previously purchased on account. In other words, they paid for the equipment that was purchased. What account should be credited? |
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Definition
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Term
| The first place that information is entered in the accounting cycle is called the |
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Definition
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Term
Identify the following transaction:
Truck 15,000
Cash 15,000 |
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Definition
| Purchased a truck for $15,000 Cash |
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Term
True or False?
A journal entry can only have one debit and one credit |
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Definition
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Term
True or False?
In a corrected recorded journal entry, the debited accounts should be listed first, followed by the credits, which are indented. |
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Definition
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Term
MERCHANDISING INCOME STATEMENT
How to compute Net Sales |
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Definition
| Sales revenue - sales discounts - sales returns and allowances |
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Term
MERCHANDISING INCOME STATEMENT
How to compute Gross Profit Margin |
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Definition
| Net Sales - Cost of Goods Sold |
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Term
MERCHANDISING INCOME STATEMENT
How to compute Net Income |
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Definition
| Gross Profit Margin - Expenses + Interest Revenue |
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Term
MERCHANDISING INCOME STATEMENT
How to compute Gross Profit Percentage |
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Definition
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Term
| What statement is over a period of time |
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Definition
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Term
| What statement is a point in time |
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Definition
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Term
| How to calculate End Capital |
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Definition
| Beginning Capital + Net Income - Withdrawals |
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Term
| Cash in Bank Reconciliation journal entries for DEDUCTIONS is ______ |
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Definition
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Term
| Cash in Bank Reconciliation journal entries for ADDITIONS is ______ |
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Definition
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Term
| Three things that will always go on the bank side |
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Definition
Deposits in transit (addition)
Outstanding checks (deduction)
Errors, if they made any (addition) |
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Term
| What four things go on the journal entry to record the payroll tax expense for an employer |
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Definition
Debit: Payroll Tax Expense
Credit: Social security tax payable
Medicare tax payable
State Unemployment Payable
Federal Unemployment Payable
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