ACC Intermediate Exam

Cash

Asset, appears on a Balance Sheet and Statement of Cash Flows

Accounts Receivable

Asset, appears on a Balance Sheet

Inventory

Asset, appears on a Balance Sheet

Supplies

Asset, appears on a Balance Sheet

Land

Asset, appears on a Balance Sheet

Buildings

Asset, appears on a Balance Sheet

Equipment

Asset, appears on a Balance Sheet

Prepaid Insurance

Asset, appears on a Balance Sheet

Interest Receivable

Asset, appears on a Balance Sheet

Accounts Payable

Liability, appears on a Balance Sheet

Notes Payable

Liability, appears on a Balance Sheet

Bonds Payable

Liability, appears on a Balance Sheet

Wages Payable

Liability, appears on a Balance Sheet

Interest Payable

Liability, appears on a Balance Sheet

Unearned Revenue

Liability, appears on a Balance Sheet

Common Stock

Equity, appears on a Balance Sheet

Retained Earnings

Equity, appears on a Balance Sheet

Service Revenue

Revenue, appears on an Income Statement

Sales Revenue

Revenue, appears on an Income Statement

Fee Revenue

Revenue, appears on an Income Statement

Interest Income

Revenue, appears on an Income Statement

Dividend Income

Revenue, appears on an Income Statement

Wages Expense

Expense, appears on an Income Statement

Rent Expense

Expense, appears on an Income Statement

Utilities Expense

Expense, appears on an Income Statement

Insurance Expense

Expense, appears on an Income Statement

Advertising Expense

Expense, appears on an Income Statement

Income Tax Expense

Expense, appears on an Income Statement

Cost of Goods Sold

Expense, appears on an Income Statement

Interest Expense

Expense, appears on an Income Statement

What is the 1st step in the Accounting Cycle

Analyze Transactions

What is the 2nd step in the Accounting Cycle

Journalize Transactions

What is the 3rd step in the Accounting Cycle

Post to T-accounts (General Ledger)

What is the 4th step in the Accounting Cycle

Prepare Trial Balance

What is the 5th step in the Accounting Cycle

Prepare Adjusting Entries

What is the 6th step in the Accounting Cycle

Adjusted Trial Balance

What is the 7th step in the Accounting Cycle

Financial Statements

What is the 8th step in the Accounting Cycle

Closing Entries

What is the 9th step in the Accounting Cycle

Post-Closing Trial Balance

Adjustements always include what

At least one Balance Sheet and at least one Income Statement

Adjustments never include what

Cash

Do you depcreiate land?

No

What do you do for Accumulated Depreciation

Credit it

What closes Revenue Accounts?

Retained Earnings (Income Summary)

What closes Expense Accounts?

Retained Earnings (Income Summary)

Do you close Assets?

No

Do you close Liabilities?

No

Do you close Common Stock?

No

Net Income Equation

Revenue - Expenses = Net Income

What is the 1st step in a Multi-Step Income Statement?

Net Sales

Sales
- Sales Returns & Allowances

- Sales Discounts

What is the 2nd step in a Multi-Step Income Statement?

Gross Profit

Net Sales
- COGS

What is the 3rd step in a Multi-Step Income Statement?

Operating Income

Gross Profit

- Operating Expenses

What is the 4th step in a Multi-Step Income Statement?

Income Before Taxes

Operating Income

+ Other Revenues

- Other Expenses

What is the 5th step in a Multi-Step Income Statement?

Net Income

Income Before Taxes

- Income Tax Expense

What is the Statement of Retained Earnings Formula?

Beginning Retained Earnings

+ Net Income

- Dividends

= Ending Retained Earnings

What are Current Assets in a Balance Sheet?

Cash, accounts recievable, inventory, and supplies

What are Long-Term Assets in a Balance Sheet?

Land, building, equipment, and furniture

Less: Accumulated Depreciation

What are Current Liabilities in a Balance Sheet?

Accounts Payable and Notes Payable

What are Long-Term Liabilities in a Balance Sheet?

Bonds Payable

What is Stockholders’ Equity in a Balance Sheet?

Common Stock and Retained Earnings

Raw Materials

Materials not yet used in production

Work in Process

Partially completed goods

Finished Goods

Completed products ready for sale

FIFO

First In, First Out

When do you use FIFO during inflation?

During Ending Inventory