Intermediate Accounting Exam 1: Chapters 1, 2, 3, 4 Questions With Correct Answers

Intermediate Accounting Exam 1: Chapters 1, 2, 3, 4 Questions With Correct Answers transactions recorded under accrual accounting - answerRecords revenues when earned and expenses when incurred debit and credit - answerthe left and right side of an account, does not imply increases or decreases normal balance - answerthe expected balance in an account, the side that increases the value of the account cash basis accounting - answercompanies only recognize revenue when cash is received and expenses when cash is paid temporary accounts - answerincome statement accounts, dividends permanent accounts - answerbalance sheet accounts four closing entries for temporary accounts - answerREVENUE: Debit revenue and gain accounts Credit Income summary EXPENSE: Debit Income summary for total expenses Credit each expense INCOME SUMMARY: Debit income summary Credit retained earnings (net income)/// Debit retained earnings Credit income summary (net loss) DIVIDENDS: Debit retained earnings