Question 1

Nominal (temporary) accounts

Accepted Answer

income statement accounts

Question 2

Journal

Accepted Answer

book of original entry

Question 3

ledger

Accepted Answer

final entry, list of account

Question 4

postin

Accepted Answer

transferring from J to L

Question 5

adjusting entries

Accepted Answer

Entries made at the end of an accounting period to bring all accounts up to date on an accrual basis,

Question 6

CLOSING ENTRIES

Accepted Answer

The formal process by which the enterprise reduces all nominal accounts to zero and determines and transfers the net income or net loss to an owners’ equity account.

Question 7

balance sheet

Accepted Answer

fi nancial condition of the enterprise at the end of a period.

Question 8

income statement

Accepted Answer

results of operations during the period

Question 9

statement of cash fl ows

Accepted Answer

reports the cash provided and used by operating, investing, and fi nancing activities during the period.

Question 10

statement of retained earnings

Accepted Answer

reconciles the balance of the retained earnings account from the beginning to the end of the period.

Question 11

Accouting cycle

Accepted Answer

journalize, post,  trial balance, adjustments, fin statement prep, closing entries, post closing trial balance,

Question 12

Defferals

Accepted Answer

expenses or revenues that are recognized at a date later than the point when cash was originally exchanged. The two types of deferrals are prepaid expenses and unearned revenues. statements overstated otherwise

Question 13

accruals

Accepted Answer

accrued revenues and accrued expenses, statement understaed otherwise

Question 14

Prepaid expense adjusting reason

Accepted Answer

Expenses paid in cash before they are used or consumed

Question 15

unearned revenue adjusting reason

Accepted Answer

Cash received before services are performed

Question 16

accrued revenues  adjusting reason

Accepted Answer

Revenues for services performed but not yet received in cash or recorded.

Question 17

Accrued expenses adjusting reason

Accepted Answer

Expenses incurred but not yet paid in cash or recorded.

Question 18

prepaid expense adjusting entry

Accepted Answer

debit prepaid expense
credit prepaid insurances (asset)

Question 19

unearned revenue adjusting entry

Accepted Answer

debit unearned revenue (liability)
credit sales/services revenue account

Question 20

Supplies adjusting entries

Accepted Answer

supplies used up
debit supplies expense (
credit supplies

Question 21

insurance adjusting entries

Accepted Answer

insurance depreciating from date purchased
deb insurance expense
cred prepaid insurance

Question 22

depreciaton adjusting entries

Accepted Answer

debit depreciation expense
credit accumulated depreciation-equipment

Question 23

book valjue

Accepted Answer

original price - accumulated depreciation

Question 24

entry for performing services or providing product before collecting payment

Accepted Answer

Accrued reveneue
A. Recievable/cash debit
service/sale revenue credit

Question 25

calculating interst

Accepted Answer

face value*rate*x months over 12 months

Question 26

adjusting interest entry

Accepted Answer

debit interest expense
credit interest payable

Question 27

adjusting wages entry

Accepted Answer

debit salaries and wages expense
credit salaries and wages payable

Question 28

bad debt entries

Accepted Answer

debit bad debt expense
credit allowance for doubt ful accounts

Question 29

closing steps

Accepted Answer

1.) close revenue accounts, 2.] close expense accounts,  3.]close income summary accounts, 4.] close dividends

Question 30

1.) close revenue accounts,

Accepted Answer

debit revenue accounts, credit income summary (if net loss vice versa)

Question 31

2.] close expense accounts,

Accepted Answer

debit income summary 
credit expense accounts

Question 32

3.]close income summary accounts,

Accepted Answer

if balance on credit side of income summary, debit balance to retained earnings (net income)
if balance on debit side of income summary, creidt balance to retained earnings (net loss)

Question 33

4.] close dividends/withdrawals

Accepted Answer

debit retained earnings
credit dividends/withdrawals

Question 34

income statement format

Accepted Answer

netsales- costof goods sold=gross income-expenses-intersest expense+interest revenue-income tax=netincome

Question 35

Statement of Retained Earnings format

Accepted Answer

Retained earnings beginning of period+income-dividends/withdrawals=retained earnings end of period

Question 36

Current assets

Accepted Answer

stuff that could be used up within a year
cash, recievables, inventory, prepaid insurance, prepaid rent.

Question 37

Property Plant and equipment

Accepted Answer

equipment-accumulated depreciation

Question 38

current liabilites

Accepted Answer

notes, accounts, taxes payables

Question 39

longterm liablities

Accepted Answer

bonds payable

Question 40

stock holders equity

Accepted Answer

placed after liabilities on blance shets
common stock issued and outstanding+retained earnings=total stockholdrs equity

Inter ACCT 1 exam 1

chap 3

Term	Definition
	balance sheet accounts
Nominal (temporary) accounts	income statement accounts
Journal	book of original entry
ledger	final entry, list of account
postin	transferring from J to L
adjusting entries	Entries made at the end of an accounting period to bring all accounts up to date on an accrual basis,
CLOSING ENTRIES	The formal process by which the enterprise reduces all nominal accounts to zero and determines and transfers the net income or net loss to an owners’ equity account.
balance sheet	fi nancial condition of the enterprise at the end of a period.
income statement	results of operations during the period
statement of cash fl ows	reports the cash provided and used by operating, investing, and fi nancing activities during the period.
statement of retained earnings	reconciles the balance of the retained earnings account from the beginning to the end of the period.
Accouting cycle	journalize, post, trial balance, adjustments, fin statement prep, closing entries, post closing trial balance,
Defferals	expenses or revenues that are recognized at a date later than the point when cash was originally exchanged. The two types of deferrals are prepaid expenses and unearned revenues. statements overstated otherwise
accruals	accrued revenues and accrued expenses, statement understaed otherwise
Prepaid expense adjusting reason	Expenses paid in cash before they are used or consumed
unearned revenue adjusting reason	Cash received before services are performed
accrued revenues adjusting reason	Revenues for services performed but not yet received in cash or recorded.
Accrued expenses adjusting reason	Expenses incurred but not yet paid in cash or recorded.
prepaid expense adjusting entry	debit prepaid expense credit prepaid insurances (asset)
unearned revenue adjusting entry	debit unearned revenue (liability) credit sales/services revenue account
Supplies adjusting entries	supplies used up debit supplies expense ( credit supplies
insurance adjusting entries	insurance depreciating from date purchased deb insurance expense cred prepaid insurance
depreciaton adjusting entries	debit depreciation expense credit accumulated depreciation-equipment
book valjue	original price - accumulated depreciation
entry for performing services or providing product before collecting payment	Accrued reveneue A. Recievable/cash debit service/sale revenue credit
calculating interst	face valueratex months over 12 months
adjusting interest entry	debit interest expense credit interest payable
adjusting wages entry	debit salaries and wages expense credit salaries and wages payable
bad debt entries	debit bad debt expense credit allowance for doubt ful accounts
closing steps	1.) close revenue accounts, 2.] close expense accounts, 3.]close income summary accounts, 4.] close dividends
1.) close revenue accounts,	debit revenue accounts, credit income summary (if net loss vice versa)
2.] close expense accounts,	debit income summary credit expense accounts
3.]close income summary accounts,	if balance on credit side of income summary, debit balance to retained earnings (net income) if balance on debit side of income summary, creidt balance to retained earnings (net loss)
4.] close dividends/withdrawals	debit retained earnings credit dividends/withdrawals
income statement format	netsales- costof goods sold=gross income-expenses-intersest expense+interest revenue-income tax=netincome
Statement of Retained Earnings format	Retained earnings beginning of period+income-dividends/withdrawals=retained earnings end of period
Current assets	stuff that could be used up within a year cash, recievables, inventory, prepaid insurance, prepaid rent.
Property Plant and equipment	equipment-accumulated depreciation
current liabilites	notes, accounts, taxes payables
longterm liablities	bonds payable
stock holders equity	placed after liabilities on blance shets common stock issued and outstanding+retained earnings=total stockholdrs equity

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