Accounting Basics - FSU Controller`s Office
... These are the backbone of any accounting system. Understand how debits and credits work and you'll
understand the whole system. Every accounting entry in the general ledger contains both a debit and a
credit. Further, all debits must equal all credits. If they don't, the entry is out of balance. Tha ...
The Accounting Equation
... with a debit balance (expenses)
Entry to record net income or net loss to
Entry to close owner’s drawing account to
owner’s capital account
AT1- 1 Achievement Test 1 Achievement Test 1: Chapters 1 and 2
... b. Selecting the economic activities relevant to a particular organization.
c. Preparing accounting reports, including financial statements.
d. Quantifying events in dollars and cents.
____ 9. The current source of "GAAP" in the private sector is the
a. Accounting Principles Board.
b. Internal Reven ...
... A sole proprietor’s owner’s equity balance was $10,000 at the beginning of the year and
was $22,000 at the end of the year. During the year the owner invested $5,000 in the
business and had withdrawn $24,000 for personal use. The sole proprietorship’s net
income for the year was $
Accounting Principles, Concepts and Conventions
... financial results with the help of Trial Balance.
3. To know the progress of the business at the end of
each accounting period.
4. To check and control misappropriation and
defalcation by employees.
5. To have proper and systematic record of business
for future reference.
BUSA 101 – MR
... 23. A report of revenues and expenses for a specific period of time
is a(n) .......................................................................................................................
23. ____________________________ ______
24. A report of assets, liabilities, and owner’s equity as of a ...
Chapter 9 Notes
... Accts used to accumulate information until it
is transferred to the owner’s capital account.
(Also referred to as nominal accounts)
– Owner’s drawing account
– Income summary account
Balances must be reduced to zero at the end
of each fiscal period.
... The purchaser may make back-up copies for his or her
own use only and not for distribution or resale. The
author and the publisher assume no responsibility for
errors, omissions, or damages caused by the use of these
programs or from the use of the information contained
Basics Of Accounting
... increasing our knowledge & getting deeper in our study, to know all about
this powerful 8letter word ‘A C C O U N T S’ There are 3 RULES OF
ACCOUNTING on which entire accounts depends upon. Understanding the
rules of Accounting is making your foundation in Accounts strong,
whereby any transaction ca ...
Test 1, Spring 1997 - College of Business Administration
... the amount of dividends that will be paid each year to
an arbitrary value assigned to the stock at the
inception of the corporation
a value assigned to the stock to facilitate its
recording in the accounting books
Case Development (Action) Slides
... Chart of Accounts
• Assign appropriate account numbers to each
– Assets (100), Liabilities (200), Owners Equity
ADVANCED ACCOUNTING (02)
... A. total merchandise available for sale
B. cost of goods sold
C. gross profit on sales
D. net income
13. The total of the balances in the creditor’s accounts should agree with the balance of _______.
A. purchase account in general ledger
B. accounts Receivable account in general ledger
C. accounts P ...
Basics of bookkeeping
... • method of recording transactions in the accounting
• two columns needed for dollar amounts
... period are to be taken into consideration. If
expenses have been incurred but not paid
during that period ,liabilities for unpaid
amount should be created before the
accounts can be said to show the actual profit
and loss. All expenses and income should
properly be adjusted through accounting
Keeping The Books With
... Equity is defined by Assets and Liabilities.
Net worth (equity) is calculated by subtracting your liabilities from your assets:
Equity = Assets - Liabilities
You increase equity through income, and decrease equity through expenses
The Accounting Equation:
Assets - Liabilities = Equity + (Income – Ex ...
2001 accounting i
... but the credit side is, assets will be understated.
8) A change in the balance of a customer’s account
also changes the balance of the controlling
account, Accounts Receivable.
9) Each amount in the General Debit column of the
combination journal is posted separately to an
account in the general led ...
PART A - Chabot College
... Analyze each transaction. Use T accounts to record these transactions.
Transactions are unrelated to each other!!!! Be sure to put the name of account
on the top of each account. Label each T account with debit/credit and
plus/minus signs (2 pts each transaction):
Wynalda Litho, a leading folding carton manufacturer located in
... * Invoice customers upon shipment verifying accuracy of price, freight and additional charges
* Enter estimated and actual mark-ups into computer system upon completion of jobs
* Review lists of open jobs on a regular basis to ensure all shipped jobs have been invoiced
* Send invoices to customers v ...
Exam 1 Review
... 17. In June, Florida Flippers paid $4,000 in wages to employees who worked in June. What amount of
expense should be recognized at the end of June?
18. Which of the following accounts is least likely to be debited when revenue is recorded?
b. Accounts Rece ...
Chapter 2 - UNI Business
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Special Journals and Vouchers
... financial statements (using a work sheet or from the
adjusted individual accounts), close the nominal
accounts, and prepare a post-closing trial balance.
This process of recording, classifying, summarizing,
and reporting of accounting data is based on an old
and universally accepted system called do ...
Debits and credits
In double entry bookkeeping, debits and credits (abbreviated Dr and Cr, respectively) are entries made in account ledgers to record changes in value resulting from business transactions. Generally speaking, the source account for the transaction is credited (that is, an entry is made on the right side of the account's ledger) and the destination account is debited (that is, an entry is made on the left side). Total debits must equal total credits for each transaction; individual transactions may require multiple debit and credit entries to record.The difference between the total debits and total credits in a single account is the account's balance. If debits exceed credits, the account has a debit balance; if credits exceed debits, the account has a credit balance. For the company as a whole, the totals of debit balances and credit balances must be equal as shown in the trial balance report, otherwise an error has occurred.Accountants use the trial balance to prepare financial statements (such as the balance sheet and income statement) which communicate information about the company's financial activities in a generally accepted standard format.