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Multiple Choice
Conservatism means that if there is uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount. For the example, answers will vary. Sample answer: When I am budgeting for revenue in our household, I estimate what amount we will be paid, and I always round slightly down and with the expenses round up slightly so that there is a little leftover.
Assets = Liabilities + Equity; Revenues increase equity, while expenses decrease equity.
The general journal.
Decreasing cash decreases assets; decreasing accounts payable decreases liabilities. Assets (decrease) = Liabilities (decrease) + Equity (no change).
The combined total of liabilities and equity equals the total of assets because there is a claim against every asset that the company owns. Creditors have claims against some of the company’s assets, in the amount of the liabilities owed to them; owners (stockholders) have claims against all the rest of the company’s assets. Equity is the total of assets minus liabilities, which is sometimes referred to as net assets.
The total in accounts receivable will increase with a debit. We know this because accounts receivable is an asset account, and asset balances increase with debit entries.
A journal is a chronological listing of all of the recordable transactions that have occurred in a company.
Recognize means to make a journal entry.
It is a comprehensive listing for all accounts a company has and their balances.
T-accounts represent the changes made to the general ledger. They are used as an illustrative tool when planning or discussing the effects a particular transaction will have on the accounting records. T-accounts are used in academic and business situations, as they are easier to sketch out than general journals.
A prepaid account is an account that shows the balance of money we have paid in advance of an expense being incurred. Prepaid accounts are assets.
A T-account is a visual depiction of the activity in an account. Entries made on the left side of the T-account represent debits, while entries on the right side represent credits. The ending account balance is the total net combined debits and credits for that account.
Asset accounts, dividend accounts, and expense accounts are increased with a debit. (Also, contra-liability accounts, contra-equity accounts, and contra-revenue accounts are increased with a debit.)
Normal balance refers to the expected ending balance for an account, based on the way that the account balance increases (either debit or credit.)
The purpose of the trial balance is to recap the account balances, to ensure that debits equal credits. The trial balance is used to prepare the financial statements, in this order: Income Statement, Retained Earnings Statement, and Balance Sheet.
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- Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper
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- Book title: Principles of Accounting, Volume 1: Financial Accounting
- Publication date: Apr 11, 2019
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- Book URL: https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
- Section URL: https://openstax.org/books/principles-financial-accounting/pages/chapter-3
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COMMENTS
Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. Accounting chapter 7 homework. define internal control. Click the card to flip 👆. The organizational plan and all related measures that safeguard assets, encourage employees to follow company policies, promote ...
For the truck, what amount should be debited to the asset account Vehicles? $45,000. On March 1, Cooper Company purchased new equipment for $50,000. Wright paid cash for the equipment. Other costs associated with the equipment were: transportation costs. $1,000; sales paid $3,000; and installation costs, $2,500.
Terms in this set (32) Study with Quizlet and memorize flashcards containing terms like employees who have physical custody of assets fo not have access to the accounting records, each month, the assets on hand are compared to the accounting records by an internal auditor, a prenumbered shipping document is prepared for each shipment of goods ...
Access Connect Plus Accounting with LearnSmart 1-Semester Access Card for Financial Accounting 7e 7th Edition Chapter 7 solutions now. Our solutions are written by Chegg experts so you can be assured of the highest quality!
We want an accounting information system to be more than just a black box. 3. Scanners can input data faster and typically would produce fewer input errors. 5. All of these areas need an accounting information system. Keeping up with all of the data for an entire year without it would be difficult.
Video solutions to selected problems are available to students enrolling in the online course. The pdf version of the solutions manual also includes links to the video solutions. You can purchase the solutions manual in the bookstore. Problems - Chapter 7: Accounts Receivable.
Glencoe Accounting Chapter 7: Posting Journal Entries to General Ledger Accounts Homework Practice. Effect of Errors on the Trial Balance. The following errors occurred in posting to the general ledger from a general journal. 1. A debit of $1,000 to Office Supplies was posted twice. 2. A debit of $2,500 to Rent Expense was posted as $5,200. 3.
Financial accounting | 7th Edition. ISBN-13: 9781111789626 ISBN: 1111789622 Authors: Curtis L Norton, Gary A Porter Rent | Buy. This is an alternate ISBN. View the primary ISBN for: Financial Accounting: the Impact on Decision Makers 7th Edition Textbook Solutions.
Why It Matters; 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements; 3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions; 3.3 Define and Describe the Initial Steps in the Accounting Cycle; 3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business ...
Step 3 of 6. 1 (b) Find the amount of accounts payable as on September 24, 2016. As mentioned in the given financial statement, the accounts payable of Company A is. Step 4 of 6. 2 (a) Calculate the days' payable outstanding for the year ended September 30, 2017. Use the following method to calculate days' payable outstanding.
Financial Accounting, 10e WileyPLUS (next Generation) + Loose-Leaf | 10th Edition ISBN-13: 9781119491637 ISBN: 1119491630 Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso Rent | Buy This is an alternate ISBN.
Step 7 of 18. 1. Average Cost Method: As per average cost method, the average cost per units is calculated to calculate the value of ending inventory. Average cost per unit is calculated by dividing the cost of goods available for sale by the number of units available for sale. The cost of goods available for sale, ending inventory and cost of ...
intermediate accounting 1 chapter 7 homework solutions. Course. Intermediate Accounting I (ACC 3300 ) 5 Documents. Students shared 5 documents in this course. University University of Houston-Downtown. Academic year: 2020/2021. Uploaded by: JT. Justin Tullier. University of Houston-Downtown. 0 followers. 1 Uploads. 30 upvotes.
Step-by-step solution. Step 1 of 2. The word cash flow is usually employed to define the cost and benefits of an estimated project. The benefits are indicated as cash inflows while the costs are indicated by cash outflows. In addition, present value of cash flow refers to the discounted value in the current month of a future sum of money.
Access Intermediate Accounting 7th Edition Chapter 7 Problem 7E solution now. Our solutions are written by Chegg experts so you can be assured of the highest quality!
The two important books in the accounting process are the journal and the ledger. The simple account that shows debit amounts on one side and credit amounts on the other is called a T-account.
6/4/2017 Accounting Chapter 7 Flashcards | Quizlet ÂchapterÂ7ÂflashÂcards/ 1/6 29 terms lilrocket10 Accounting Chapter 7 Like this study set? Create a free account to save it. Create a free account Maybe later A balance sheet has three sections: heading, assets, and liabilities. False.
5. The general journal. 7. Decreasing cash decreases assets; decreasing accounts payable decreases liabilities. Assets (decrease) = Liabilities (decrease) + Equity (no change). 9. The combined total of liabilities and equity equals the total of assets because there is a claim against every asset that the company owns.
A company that uses quarterly accounting periods pays $6,000 for six months of prepaid rent on October 1. What is the December 31 adjusting entry? Debit rent & lease $3000; Credit prepaid rent $3,000. A company that uses quarterly accounting periods pays $15,000 for twelve months of prepaid insurance on October 1.