revenues & expenses other terms review potpourri $100100$100100$100100 $200200$200200$200200...
TRANSCRIPT
Revenues & Expenses
Other Terms
Review Potpourri
$100 $100 $100
$200 $200 $200
$300 $300 $300
$400 $400 $400
$500
Dr/Cr Revisited
$400
$100
$200
$300
$500
Accrual Basis
$100
$200
$300
$400
$500 $500 $500
Revenues & Expenses - $100
The type of income statement account that reports amounts charged for providing goods or services to customers.
What are Revenues?
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Revenues & Expenses - $200
The account used to record the cost of electrical services used during the current period.
What is “Electricity Expense” (or Utilities Expense)?
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Revenues & Expenses - $300
The account used to record rent paid two months in advance.
What is “Prepaid Rent”?
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Revenues & Expenses - $400
The second line shown in the heading of the Income Statement.
What is “Income Statement”?
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Revenues & Expenses - $500
The line of the income statement that combines all revenues and expenses.
What is Net Income?
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Accrual Basis - $100
The basis of accounting in which revenues and expenses are recorded when cash is received or paid.
What is the Cash Basis Accounting?
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Accrual Basis - $200
The word that describes when a company has performed the acts promised to a customer.
What is “earned”?
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Accrual Basis - $300
The term used to describe what happens when economic benefits of an item are used up in the current period.
What is when expenses are “incurred”?
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Accrual Basis - $400
A liability representing a company’s obligation to provide goods or services to customers in the future.
What is Unearned Revenue?
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Accrual Basis - $500
The two basic accounting principles that together represent the “rule of accrual.”
What are the Revenue and Matching Principles?
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Dr/Cr Revisited - $100
These (debits or credits) increase Contributed Capital, Retained Earnings, and Revenues.
What are credits?
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Dr/Cr Revisited - $200
These (debits or credits) increase Expenses.
What are debits?
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Dr/Cr Revisited - $300
DAILY DOUBLE!!!
Dr/Cr Revisited - $400
The accounts for a hair salon that are affected when a customer redeems a $200 gift card for a really nice haircut.
What are Unearned revenue (decrease, debited) and Service Revenue (increase, credited)?
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Dr/Cr Revisited - $500
The accounts affected when a $300 gift card is sold for cash.
What are Cash (increase, debited) and Unearned Revenue (increase, credited)?
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Other Terms - $100
The basis of accounting that records revenues when they are earned and expenses when they are incurred.
What is Accrual Basis Accounting?
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Other Terms - $200
The idea that an indefinite period can be divided into periods for the purposes of evaluating business performance.
What is the “Time Period Assumption”?
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Other Terms - $300
The accounting principle that requires that revenues be recorded when they are earned.
What is the Revenue Principle?
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Other Terms - $400
The name of the policy that defines when a company reports its revenue from operating activities.
What is a Revenue Recognition Policy?
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Other Terms - $500
The accounting principle that requires that expenses be recorded in the period in which they are incurred to generate revenue.
What is the Matching Principle?
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Review Potpourri - $100
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The equation used for the Balance Sheet.
What is Assets = Liabilities + Stockholders’ Equity?
Review Potpourri - $200
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Two equalities that must be maintained when recording journal entries for each and every transaction.
What is debit=credit and A=L+SE?
Review Potpourri - $300
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A balance sheet that separates assets and liabilities into current and long-term categories.
What is a Classified Balance Sheet?
Review Potpourri - $400
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The requirement to use the least optimistic measures when the value of an asset or liability is uncertain.
What is Conservatism?
Review Potpourri - $500
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What it means to declare a dividend.
What is a formal promise to pay out some of a company’s resources to its owners?
Daily Double Specify Your Wager!
Dr/Cr Revisited ---
An internal report created to check on the equality of recorded debits and credits.
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What is a Trial Balance?