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18 Cards in this Set
- Front
- Back
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True or False: The balance sheet is the last financial statement to be prepared, after the income statement and the statement of retained earnings.
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True
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The unearned revenue account was not adjusted for work performed in the current period. What is the effect of this error?
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Liabilities will be overstated and revenues will be understated.
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The normal balance of a revenue account is a _______, because revenues _________ stockholders' equity.
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credit, increase
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True or False: Financial accounting provides budgeting information to a company's managers.
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False
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True or False: A trial balance lists all accounts with their balances--assets first, then liabilities and stockholders' equity.
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True
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What is a Slide error?
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writing $400 as $40.
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What is a Transposition error?
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writing $2100 as $1200.
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True or False: Accounting is moving in the direction of reporting more and more assets and liabilities at their fair values.
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True
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The financial statements are prepared from the ____________.
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adjusted trial balance
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True or False: Expenses have a future benefit to the company.
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False
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True or False: Accounts are records of increases and decreases in individual financial statement items.
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True
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Which three factors influence business and accounting decisions?
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economic, legal, and ethical.
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An example of a noncash transaction under the accrual method of accounting does NOT include...
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collecting cash from customers
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Gains and losses appear on which financial statement?
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Income Statement
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To compute ending retained earnings on the statement of retained earnings...
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Net income is added to the beginning retained earnings and dividends are subtracted from the beginning retained earnings.
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What is the ledger?
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Book of accounts and their balances.
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What is the proper format for a trial balance?
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Company Name
Trial Balance Date |
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The owners' equity of any business is
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assets minus liabilities
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