which of the following is an expense account quizlet

In government accounting, the revenue control account is increased when recording a. E 3. Managerial accounting is a branch of financial accounting and serves essentially the same purposes as financial accounting. Accountants may perform the closing process monthly or annually. D. Bad debt expense is only … a. False The appropriations. Read Multiple Choice Questions and answers. Amounts owed to suppliers for supplies purchased on account are defined as: a. Learn vocabulary, terms, and more with flashcards, games, and other study tools.. CORRECT! Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past. The budget. Get Accounting Help from Chegg. The ultimate goal of any set of accounting principles is to ensure that a company's financial statements are complete, consistent, and comparable. 6. Let’s take a close look at accounting equation components: Assets Assets reflect the total value of the property that the business has, and which is in its turnover. Accrual Accounting vs. Cash Basis Accounting Example . Right! In accrual-basis accounting, recording the allowance for doubtful accounts at the same time as the sale improves the accuracy of financial reports. Dan and Den, Inc. reports the following assets and liabilities. accounting period. Transcribed image text: Consider the following accounting terms and definitions, and match each term to the definition: (Click the icon to view the definitions.) Annual report need not include audited fin stmts B. Liabilities increase and assets decrease. $7,000 decrease in cash. (Abbreviations used: Stmt. managerial accounting systems are. The balance sheet is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation, or other business organization, such as … View Test_ Principles of Accounting Test 1 _ Quizlet.pdf from BUSINESS BAAB1013 at UNITAR International University. c. The closing of budgetary accounts. First, consider the entries used to record credit sales and the collection of cash. Debit Of $23,000. Take your time, it's a bit difficult. Use the following information for questions 3 through 6: A company using the accrual method of accounting performed services on account in August. 11/24/2020 Test: Accounting Chp 2 | Quizlet NAME 7 Matching questions 1. d. Recognizing expenses incurred but not yet recorded e. None of the options listed ____ 15. Definition of Cash-Basis Accounting Expense account definition is - an account of expenses reimbursable to an employee; also : the right of charging expenses to such an account. While there are a variety of types of accounting, they all use one common characteristic: accounting costs. In simple terms, any expense that comes out of your bank account is considered an accounting cost. View Test_ Accounting Chp 2 _ Quizlet.pdf from ACCT 2001 at Louisiana State University, Alexandria. For example, assume the following data from the firm’s accrual based accounting system (all sales are credit sales); Accounts Receivable 1/1/00 $400,000 Accounts Receivable 12/31/00 $450,000 2000 Sales $3,000,000 How much cash did the firm receive from customers? If you have difficulty answering the following questions, learn more about this topic by reading our Financial Accounting (Explanation). Each member of an LLC is liable only for his or her own actions. A. a "use" of funds would be the: $7,000 decrease in cash. If an expense account is credited, the expense account is increased. Compute the totals that would appear in the corporation’s basic accounting equation (Assets = Liabilities + Stockholders’ Equity (Capital Stock)). The correct answer is: Increase total liabiliies. Right! The study of accounting will be useful only if a student is interested in working for a corporation. b. Use the following information for questions 17-21: Expenses. If Allowance for Doubtful Accounts has a $3030 debit balance, the adjustment to record bad debts for the period will require a. credit to Allowance for Doubtful Accounts for $10300. 4? deferred expense: A deferred expense or prepayment, prepaid expense, is an asset representing cash paid out to a counterpart for goods or services to be received in a later accounting period. 1. On the following lines, write the names of the expense accounts, indented half an inch, in the order that they appear on the work sheet. Notes (c) Unallocated fixed overhead costs are recognized as an expense in the period 12. an expense which is recorded with the passage of time. Accounting conservatism is a set of bookkeeping guidelines that call for a high degree of verification before a company can make a legal claim to any profit. Which of the following is d. 8/15/2016 Accounting Final 2101 Flashcards | Quizlet ­final­2101­flash­cards/ 2/12 If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? 1. Income statement Liability Net income Net loss 10. Treasury Stock receives cash dividends but not stock dividends. Questions 4-6: Create journal entries to record the following transactions A) Going-concern assumption. Try another answer. The projected bad debt expense is properly matched against the related sale, thereby providing a more accurate view of revenue and expenses for a … Services were performed for customers on account, $4,200. What are the correct closing entries on december 31? Question 3: James takes out a $25,000 loan with his bank. Financial statements report the fair market value of a company. This approach to accounting is used by all types of government entities, including federal, state, county, municipal, and special-purpose entities. Sale recognition. Expenses incurred in the same period in which revenues are earned are also accrued for with a journal entry. b. 1:28 The ledger of fun in the sun sports includes the following accounts with normal balances: common stock $9,000, Revenue $13,000; Dividends $800; Wages expense $8,400; and rent expense $1600. A company began the accounting period with $50,000 in owner’s capital, ended with $75,000 in owner’s capital, and the owner withdrew $30,000 during the period for personal use. [50 hours X $10] plus [10 hours X $5] = $550. B. an expense that has been incurred but for which payment has not yet been made. = beginning.) Key Takeaways 1 Accrued expenses are recognized on the books when they are incurred, not when they are paid. 2 Accrual accounting requires more journal entries that simple cash balance accounting. 3 Accrual accounting provides a more accurate financial picture than cash basis accounting. Exercise 2. a)An asset being reported at its original value b)An asset being reported at its depreciation value c)An asset being reported at its market value 21. C. Bad debt expense is recorded during the year of the credit sale. 7.

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