Acct 1St Test Memorize

Front 1

prepaid expenses

Back 1

Debit Expenses
Credit Assets (already paid for)
(assets over stated, expenses understated)

Front 2

unearned revenues

Back 2

Debit Liabilities (cause not earned but received, so you owe them)
Credit Revenues
(liabilities overstated, revenues understated)

Front 3

Accrued revenues

Back 3

Debit Assets (already earned, tho not received, so asset over time)
Credit Revenues
(assets understated, revenues understated)

Front 4

Accrued expenses

Back 4

Debit Expenses
Credit Liabilities (incurred, but it hasn't been paid for yet)
(Expenses understated, liabilities understated)

Front 5

Trial Balance order

Back 5

assets > liabilities > stock holders equity > revenues > expenses (ALSRE)

Front 6

Figuring out adjustments

Back 6

Look at the word, revenues credit revenues, expenses debit expenses. If you already paid or earned the remainder is asset. if you haven't earned or paid for it, the remainder is liability.

Front 7

Pay off liability (cash account)

Back 7

Debit dividend or payable, credit cash (your taking in the liability that you owe, a payable, and giving cash)

Front 8

Pay with liability (cash account)

Back 8

debit services, expenses or assets, Credit payable (Your giving them the liability, which is a payable)

Front 9

Bill someone w/ liability=Someone pays you with liability

Back 9

debit recievable, credit services (just like cash, debit what your getting)

Front 10

Someone pays off liability to you

Back 10

Debit cash, credit receivable (you debited receivable as payment, now you exchange for $)

Front 11

Income Statement

Back 11

Reports revenues and expenses, as well as net income or net loss. (Revenues&total|expenses&total|then difference)

Front 12

Retained Earnings Statement

Back 12

Reports the amounts of causes of changes in retained earnings for a specific period of time (retained earnings| add net income| subtract dividends=new retained earnings )

Front 13

Balance Sheet

Back 13

Reports assets, liabilities and stockholder's equity. (Total of assets|liabilities total, stock equity total, then add liabilities and equity)

Front 14

revenues

Back 14

Any money made selling stuff (not retained earnings)

Front 15

expenses

Back 15

not liabilities, or assets that are kept, any costs to make revenue. When paying for them, debit expenses. Examples: any expense words, income taxes, cost of goods sold

Front 16

assets

Back 16

purchased resources, furniture, computers, etc

Front 17

liabilities

Back 17

anything with word payable

Front 18

stockholders equity

Back 18

retained earnings and stock

Front 19

Liabilities made easy

Back 19

Anything where money is owed to you, even if being paid off is a receivable, anything money owed to other person is payable, follow where the cash or service is going.

Front 20

examples of accrued expenses

Back 20

interest, rent, salaries