+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Accounts increased with a credit
|
Liabilities, capital, revenue
|
|
Accounts increased with a credit (liabilities, capital, revenues)
|
Have a normal credit balance
|
|
The rules of double-entry accounting state
|
Assets, drawing, and expenses are increased with a debit
|
|
Under the business entity concept
|
Activities of a business are recorded separately from the activities of the stakeholders
|
|
The objectivity concept requires
|
Accounting records and reports be based upon objective evidence
|
|
If recorded amounts were constantly revised for offers, appraisals or opinions
|
Accounting reports would soon become unstable and unreliable
|
|
The rules of double-entry accounting state that
|
Assets, drawing, and expenses are increased with a debit and liabilities; capital and revenue are increased with a credit
|
|
An owner's investment increases
|
Cash and the capital account
|
|
All adjusting entries affect
|
One balance sheet account and one income statement account
|
|
The purpose of the adjusting entry is to
|
Bring accounts to the proper balance
|
|
If there was $5,600 worth of supplies available during a period and only $1,600 left at the end of the period. The worth of supplies was used
|
$4,000
|
|
A prepaid expense is
|
An asset
|
|
Assets become expenses when
|
They are used
|
|
If the total debits are larger than the total credits
|
The difference is net income
|
|
If the total credits are larger than the total debits
|
The difference is a net loss
|
