Chapter 3. a list of all accounts and their balances at a particular date after we have updates account balances for closing entries, the costs of assets acquired in one period that we be expensed in a future period, record revenue in the period in which it's earned, all revenue, expense, and dividend accounts' account balances are maintained for a single period and then closed (or zeroed out) and transferred to the balance of the retained earnings account at the end of the period. Chapter 1: Welcome to the World of Accounting, Chapter 6: Cash and Highly-Liquid Investments, Chapter 11: Advanced PP&E Issues/Natural Resources/Intangibles, Chapter 12: Current Liabilities and Employer Obligations, Chapter 15: Financial Reporting and Concepts, Chapter 16: Financial Analysis and the Statement of Cash Flows, Chapter 17: Introduction to Managerial Accounting, Chapter 18: Cost-Volume-Profit and Business Scalability, Chapter 19: Job Costing and Modern Cost Management Systems, Chapter 20: Process Costing and Activity-Based Costing, Chapter 21: Budgeting – Planning for Success, Chapter 22: Tools for Enterprise Performance Evaluation, Chapter 23: Reporting to Support Managerial Decisions, Chapter 24: Analytics for Managerial Decision Making. 12. income statement 1. transactions 2. periodicity assumption 3. true 4. right 5. matching principle 6. false 7. multiperiod costs and revenues that must be split among two or more accounting periods 8. accruals 9. Using cash-basis accounting, on which date should Johnson record service revenue. Papers. Principlesofaccounting.com ™ Copyright © 2020. More. Created by. Note that the Equipment account is not directly credited. 7. multiperiod costs and revenues that must be split among two or more accounting periods Illustrative Entries  Examples of journal entries for numerous sample transactions, Examples of journal entries for numerous sample transactions, Account Types  Typical financial statement accounts with debit/credit rules and disclosure conventions, Typical financial statement accounts with debit/credit rules and disclosure conventions, Glossary  Includes financial and managerial terms, Time Value of Money  Future and present value tables. Pablo Management has two part-time employees, each of whom earns $110 per day. 6. b. Chapter 14: Corporate Equity Accounting ; Chapters 15-16 Using Information. Activity ratios Profitability ratios 1. ... Financial ratios 1. The amount paid on a normal payday should also be expensed. Pablo Management has two part-time employees, each of whom earns $110 per day. 3. true Nonoperating income and expenses 1. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Ambassador Hotels purchases one year one year of fire insurance coverage on December 1 for $24,000, debiting prepaid insurance. 5. matching principle The $6,000 amount ($2,000 per day times 3 days) needs to be expensed for the work rendered. Finally, Cash is credited for $24,000 (to correct the error which showed cash increasing by $12,000 when it really decreased by $12,000). when a company receives cash in advance from a customer for products or services to be provided in the future. Connect Financial Accounting Chapter 3. Spell. 10. debit Interest Payable Search for: Recent Posts. 7. b. 10. prior to preparing financial statements accounts to zero to prepare them for measuring activity in the next period. Assets are not impacted. Refer to the info in SSQ2. Financial Acc. The customer pays for services on May 10. To correct and adjust the accounts first requires a debit to Insurance Expense for $2,000 (to reflect the expired amount). Question: Quiz: Chapter 3 Financial Quiz 2 Of 3 (1 Complete This Question: 3 Pts Selected Amounts (atDecember 31, 2010) From Green Power, Inc's Information System Appear As Follows (Click The Icon To Vew The Account Balances.) Record revenues when we earn them and we record expenses with related revenues, when a company has incurred an expense but hasn't yet paid cash or recorded an obligation to pay, when a company has earned revenue but hasn't yet received cash or recorded an amount receivable, a list of all accounts and their balances after we have updated account balances for adjusting entries. Learn. 4. a. PLAY. Conquer your course and sign up for free today! Because this was not done, liabilities and expenses are understated. Financial Accounting Chapter 3. 5. matching principle This entry reflects that the $10,000 cash disbursement is recorded as $4,000 of expense (for Thursday and Friday) and a $6,000 payment of the payable that was established on Wednesday. Solvency ratios 4. Match. According to the matching Principle, on which date should Papa's Pizza record the extermination expense, Refer to the info in SSQ1. Log In; Back. (b) An accounting time period of one year in length is referred to as a fiscal year. Click on the certificate for more information. Liquidity ratios 3. accounts to retained earnings AND reduce the balances of the temp. Test. On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and schedules a service visit for May 7. Which of the following is not listed in a post-closing trial balance. Bob Anderson, UCSB 2004 3-1 Financial Accounting: Tools for Business Decision Making, 4th Ed. Next, Prepaid Insurance is debited for $22,000; to establish the correct ending debit balance of $10,000, one must record a $22,000 debit (the existing balance is a $12,000 credit). 11. adjusted trial balance A fiscal year that extends from January 1 to December 31 is referred to as a calendar year. Flashcards. 6. false an asset's original cost less accumulated depreciation, record revenues at the time cash is received and expenses at the time cash is paid, balance sheet that groups a company's assets into current assets and long-term assets and that separates liabilities into current liabilities and long-term liabilities, entries that transfer the balances of all temporary accounts (revenues, expenses, and dividends) to the balance of the retained earnings account, an account with a balance that is opposite, or "contra", to that of its related accounts, the process of allocating the cost of a long-term asset to expense over its useful life, recognize expenses in the same period as the revenues they help to generate. 15. accrual basis, 1. transactions approach Chapter 3Adjusting Accounts forFinancial StatementsQUESTIONS1. All new certificate courses available! They are paid on Fridays for work completed Monday through Friday of the same week. Accounting Equation Format; Journal Entry Format; Standard General-Ledger Format; Trial Balance Format; Cash Book Format; Financial Statements Format; Papers. halston_maresh. Chapter 15: Financial Reporting and Concepts ; Chapter 16: Financial Analysis and the Statement of Cash Flows ; Chapters 17-20 Managerial/Cost. Which of the following statements explains timing differences for tax and financial accounting? 3. b. 1. transactions The understatement of expense causes income and equity to be overstated. Profitability ratios 2. All rights reserved. View Test Prep - Chapter 3 Quiz Answers from ACC 2023 at University of Florida. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods. This preview shows page 1 - 3 out of 6 pages. Operating Expenses Rent expense Salaries expense Supplies expense Insurance expense Depreciation expense Advertising expense Travel expense Communication expense Utilities expense …. Reduce the balance of revenue, expense, and dividend accounts to zero. 13. cash, accrual, 1. c. Accountants divide time into specific intervals for measurement purposes. Using cash-basis accounting, on which date should Papa's Pizza record the extermination expense? Connect Financial Accounting Chapter 3. all accounts that appear in the balance sheet; account balances are carried forward from period to period.

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