ACC 2213 MGCCC Exam 2 Study Guide Paul Johnson Questions and Answers 100% Solved correctly

Temporary and Real Accounts - ️️Temporary accounts are company accounts whose balances are not carried over from one accounting period to another, but are closed, or transferred, to permanent accounts at the end of an accounting period. Identify the types of accounts affecting deferrals and accruals, including their classification and normal balances. - ️️Prepaid Expenses, Unearned Revenues, Accrued Revenues, Accrued Expenses Identify the accounting method required by GAAP - ️️The accrual basis accounting method. Know the different accounting concepts covered in the text - ️️Accounting period concept- requires that revenues and expenses be reported in the proper period. Distinguish between adjusting and correcting entries - ️️Adjusting entries are a planned part of the accounting process to update the accounts. Correcting entries are not planned but arise only when necessary to correct errors. Revenue Recognition Concept- The accounting concept that supports reporting revenues when the services are provided to customers. Matching Concept - A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses. The steps of the accounting cycle in order: - ️️1. Transactions are analyzed and recorded in the journal. 2. Transactions are posted to the ledger. 3. An unadjusted trial balance is prepared. 4. Adjustment data are assembled and analyzed. 5. An optional end-of-period spreadsheet is prepared. 6. Adjusting entries are journalized and posted to the ledger. 7. An adjusted trial balance is prepared. 8. Financial statements are prepared.9. Closing entries are journalized and posted to the ledger. 10. A post-closing trial balance is prepared. Real accounts are company accounts whose balances are carried over from one accounting period to another.