Accounting Adjustments

Front 1

Cash accounting is based on cash _____ and _____. But accrual accounting is based on when _________ are earned and ______ are incurred.

Back 1

inflow, outflows, revenues, expenses

Front 2

Major reason for adjusting accounts is the ________ principle.

Back 2

matching

Front 3

Accruals are adjustments for which ___ _____ has been previously recorded.

Back 3

no data

Front 4

Deferrals are adjustments for _____ previously recorded.

Back 4

amounts

Front 5

Accrual is a revenue that ______ been received or an expense that ____ been paid.

Back 5

hasn't, hasn't

Front 6

Assets are _____ and revenue is _______.

Back 6

debited, credited

Front 7

Liabilities are _____ and expenses are _______.

Back 7

credited, debited

Front 8

Calculate depreciation expense...

Back 8

D Expense = cost - salvage value / useful life

Front 9

In which section of the USALI would cost of goods sold be?

Back 9

(Income Statement) Direct Operating expenses

Front 10

Wage Expenses would be on the ________ ________ and has a ________ normal balance.

Back 10

Income Statement, Debit

Front 11

Prepaid Rent would be on the ________ ________ and has a ________ normal balance.

Back 11

Balance Sheet, Debit

Front 12

Room Sales would be on the ________ ________ and has a ________ normal balance.

Back 12

Balance Sheet, Debit

Front 13

Investments would be on the ________ ________ and has a ________ normal balance.

Back 13

Balance Sheet, Debit

Front 14

F&B Revenue would be on the ________ ________ and has a ________ normal balance.

Back 14

Income Statement, Credit

Front 15

Accounts Payable would be on the ________ ________ and has a ________ normal balance.

Back 15

Balance Sheet, Credit

Front 16

Drawing would be on the ________ ________ and has a ________ normal balance.

Back 16

Balance Sheet, Debit

Front 17

Taxes Payable would be on the ________ ________ and has a ________ normal balance.

Back 17

Balance Sheet, Credit

Front 18

Interest Expense would be on the ________ ________ and has a ________ normal balance.

Back 18

Income Statement, Debit

Front 19

Notes Payable would be on the ________ ________ and has a ________ normal balance.

Back 19

Balance Sheet, Credit

Front 20

Room Revenue would be on the ________ ________ and has a ________ normal balance.

Back 20

Income Statement, Credit

Front 21

Cash received would be on the ________ ________ and has a ________ normal balance.

Back 21

Balance Sheet, Debit

Front 22

Capital would be on the ________ ________ and has a ________ normal balance.

Back 22

Balance Sheet, Credit

Front 23

The Income Statement includes...

Back 23

Revenue, Expenses, and Net Income

Front 24

The Balance Sheet includes...

Back 24

Assets, Liabilities, and Owner's Equity

Front 25

A Deferral is a delay of the recognition of an _______ already paid or of a ________ already received.

Back 25

Expense, Revenue

Front 26

Prepaid insurance becomes _______ ________ monthly. 1/12 of annual cost.

Back 26

Insurance Expense

Front 27

Accrued Depreciation becomes __________ _________ after the useful life.

Back 27

Depreciation Expense

Front 28

When you record a depreciation expense the asset is __________ and the expense is ________.

Back 28

credited, debited

Front 29

Previously recorded assets become _______. Previously recorded liabilities become ________.

Back 29

expenses, revenues

Front 30

Advance deposit for a hotel room recorded at the end of the month that the guest finished their stay; the liability is ______ and the revenue is _______.

Back 30

debited, credited

Front 31

If you fail to adjust

wages payable and wages expense, liabilities will be ________ and expenses will be _________.

Back 31

(accrual liability/expense)

understated, overstated, understated

Front 32

If you fail to adjust advance deposit and revenue, assets will be ________, owner's equity will be ________, and revenues will be _________.

Back 32

(accrual asset/revenue)

understated, understated, understated

Front 33

If you fail to adjust prepaid insurance and insurance expense, assets will be ________, owner's equity will be ________, and expenses will be _________.

Back 33

(deferral asset/expense)

overstated, overstated, understated

Front 34

If you fail to adjust notes payable and mortgage expense, liabilities will be ________, owner's equity will be ________, and expenses will be _________.

Back 34

(accrual liability/expense)

understated, overstated, understated

Front 35

If you fail to adjust accounts receivable and revenue, liabilities will be ________, owner's equity will be ________, and revenue will be _________.

Back 35

(deferral liability/revenue)

overstated, understated, understated