Intermediate Accounting Exam 1: Chapters 1, 2, 3, 4 with Complete Solutions | Verified & Updated

Intermediate Accounting Exam 1: Chapters 1, 2, 3, 4 with Complete Solutions | Verified & Updated transactions recorded under accrual accounting - Records revenues when earned and expenses when incurred debit and credit - the left and right side of an account, does not imply increases or decreases normal balance - the expected balance in an account, the side that increases the value of the account cash basis accounting - companies only recognize revenue when cash is received and expenses when cash is paid temporary accounts - income statement accounts, dividends permanent accounts - balance sheet accounts four closing entries for temporary accounts - REVENUE: Debit revenue and gain accounts Credit Income summary EXPENSE: Debit Income summary for total expenses