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29 Cards in this Set
- Front
- Back
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Cash
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Debit. Asset. Balance Sheet
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Notes payable
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is a credit balance. Liability. Balance sheet
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Service revenue
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Credit. Shareholders equity
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Dividends
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Debit. Shareholders equity
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Equipment
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Debit. Non current asset. Balance Sheet
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Accounts receivable
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Debit. Current asset. Balance Sheet
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Unearned revenue
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Credit. Current liability. Balance Sheet
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Account payable
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Credit. Current liability. Balance Sheet
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Common Shares
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Credit. Shareholders equity (common shares)
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Salaries expense
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Debit
Shareholders equity (expense) |
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Short term investments
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Debit
Current asset Balance Sheet |
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Goodwill
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Debit. Non current asset. Balance Sheet
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Prepaid expense
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Debit
Current asset balance Sheet |
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Revenue
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Income Statement
Credit |
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Liquidity ratios
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Working capital = current assets - current liabilities
Current ratio = current assets/current liabilities higher is better |
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Solvency
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Measure a company's ability to survive
Debt to total assets = total liabilities/ total assets lower is better |
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Profitability ratios
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Earnings per share (profit earned on each common share)
= profit available to common SH / weighted average number of common shares Price-earning ratio (compare across companies) = market price per share / earnings per share |
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Depreciation
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Balance Sheet
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Withdrawals
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Shareholders equity
Debit |
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Income tax payable
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Credit
Balance sheet Liability |
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Repair service revenue
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Credit
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Expense
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Income Statement
Debit |
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Captial
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Credit
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Buying Inventory
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Perpetual
Dr. inventory Cr. accounts payable or cash |
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returning inventory
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Perpetual
Dr. accounts payable or cash Cr. inventory |
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pay shipping
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Perpetual;
Dr. inventory Cr. Cash |
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Purchase returns and allowances
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Temporary account
Credit contra expense account |
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Current ratio
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Current assets/current liabilities
helps assess the company's ability to pay its debts in the near future |
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sales returns and allowances
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income statement
debit contra revenue account. |
