Chapter 2
Business 1023 with Mcdaniel at University of Arkansas - Fayetteville
About this deck
By: Zack Altizer
Created: 2010-11-14
Size: 25 flashcards
Views: 42
Created: 2010-11-14
Size: 25 flashcards
Views: 42
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What is the system that is based on the accounting equation and requires that every business transaction be recored in at least two accounts?
Double-entry accounting system
What are an increase in stockholders' equity (retained earnings) as result of selling services or products to customers?
Revenues
What are the result of using up assets or consuming services in the process of generating revenues?
Expenses
What are resources owned by the business entity?
Assets
What are debts owed to outsiders (creditors)?
Liabilities
What are distributions of earnings to stockholders?
Dividends
What is the stockholders' right to the assets of the business?
Stockholders equity
What is the DEAS rule for asset accounts?
Debit / Credit
(+) (–)
What is the DEAS rule for liability accounts?
Debit / Credit
(–) (+)
What is the DEAS rule for stockholders' equity accounts?
Debit / Credit
(–) (+)
What is the DEAS rule for revenue accounts?
Debit / Credit
(–) (+)
What is the DEAS rule for expense accounts?
Debit / Credit
(+) (–)
What is the DEAS rule for dividend accounts?
Debit / Credit
(+) (–)
What accounts are under balance sheet accounts?
Assets, liabilities, and stockholder equity
What accounts are under income statement accounts?
Revenue and expense
What is the normal balance of an account?
The side that increases
Transactions are initially entered in a record called a what?
Journal
What is the process of transferring the debits and credits from the journal entries to accounts?
Posting
Prepaid expenses are what account?
Assets
What is the liability created by receiving the cash in advance of providing the service?
Unearned revenue
If an error has already been journalized and posted to the ledger, what is normally prepared?
A correcting journal entry
What is the copying error when the order of the digits is copied incorrectly?
Transposition
What is the copying error when the entire number is copied incorrectly one or more spaces to the right or the left?
Slide
What is prepared as a way to detect errors that may occur in posting debits and credits from the journal to the ledger?
Trial balance
What is the normal account for unearned rent?
Credit
About this deck
By: Zack Altizer
Created: 2010-11-14
Size: 25 flashcards
Views: 42
Created: 2010-11-14
Size: 25 flashcards
Views: 42
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
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