Accy 201 final ole miss Questions And Answers Rated A+

account - record of increases/decreases in specific account account balance - difference between total debits and credits including any beginning balance accounting - information and measurement system that identifies and records and communicates relevant reliable and comparable information about organizations business activities. Language of business. accounting cycle - steps in preparing financial statements Accounting Equation - Assets=Liabilities+Equity accrual basis accounting - uses adjusting process to recognize revenues when earned, and expenses when incurred. adjusting accounts - prepaid expenses, depreciation, deferred revenues, expense accruals, revenue accruals. adjustments - due to time period assumption, revenue recognition principle, matching (expense) recognition principle. allowance method for bad debts - matches estimated loss against sales they helped produce. debit bad debts expense, credit allowance for doubtful accounts. (contra asset account) asset accounts - cash, accounts receivable, notes receivable, inventory, prepaid accounts, supplies, land asset accounts - resources owned or controlled by company with expectation of future benefit.Assets - resources company owns or has control over bank reconciliation - make book and bank balances equal. business entity assumption - business is accounted for separately from other business entities capital expenditures - balance sheet expenditures, additional costs of of plant assets that provide benefits extending beyond current period. capital stock - general term referring to any shares issued to obtain capital. cash basis accounting - recognizes revenues when cash is received, and expenses when cash is paid chart of accounts - list of all ledger accounts and identification number assigned to them classified balance sheet - organizes assets and liabilities into important subgroups providing more info to decision maker closing entries - 1) debit revenue accounts credit income summary 2)debit income summary credit expense accounts 3)income: debit income summary credit retained earnings loss: flip it 4)debit retained earningscredit dividends closing process - after financial statements have been completed, 1)close credit balances in Rev. accounts to income summary 2)close debit balances in expense accounts to income summary 3)close income summary to retained earnings 4)close dividends accounts to retained earnings