SUA Chapter 1 exams

SUA Chapte r ect


Accounting Cycle Steps - co ect Answe -1) T ansactions occu ; rr r r r



2) p epa e documents;
r r



3) eco d in jou nals;
R r r



4) Post to ledge (t-accounts); r



5) P epa e unadjusted GL t ial balance;
r r r



6) P epa e and post adjusting ent ies;
r r r



7) P epa e adjusted t ial balance;
r r r



8) P epa e financial statements; and,
r r



9) P epa e closing ent ies
r r r




Step 1o Accounting Cycle - co ect Answe -T ansactions Occu rr r r r




Most common t ansaction cycles - co ect Answe -Sales and Cash eceipts;
r rr r r



Pu chases and cash disbu sements;
r r



Pay oll; r




Balance sheet accounts affected by the Sales and Cash eceipts Cycle include: - co ect R rr



Answe --Cash; r



-Accounts eceivable, R



-Allowance fo Doubtful Accounts, and r



-Common stock

Income Statement accounts affected by the Sales and Cash eceipts Cycle include: - R



co ect Answe --Sales,
rr r



-Sales etu ns and Allowances,
R r



-Bad Debt Expense, and
-Sales Discounts Taken

Balance sheet accounts affected by the Pu chases and Cash Disbu sements Cycle r r



include: - co ect Answe --Cash, rr r



-Invento y, r



-P epaid ent,
r R



-Fixed Assets,
-Accumulated Dep eciation, r



-Accounts Payable; and
-Inte est Payable r

, Income Statement accounts affected by the Pu chases and Cash Disbu sements Cycle r r



include: - co ect Answe --Pu chases, rr r r



- ent,
R



- epai ,
R r



-Postage,
-T avel,r



-Utilities, and
-F eight-In.
r




Balance sheet accounts affected by the Pay oll Cycle include: - co ect Answe --Cash, r rr r



-Wages and Sala ies Payable r



-Fede al Income Tax Withheld.; r



-FICA Taxes Payable, and
-Othe Pay oll Taxes Payable. r r




Income Statement accounts affected by the Pay oll Cycle include: - co ect Answe -- r rr r



Wages and Sala ies Expense, and r



-Pay oll Tax Expense. r




Step 2 of the Accounting Cycle: - co ect Answe -P epa e Documents rr r r r




Pay oll Time Ca d/ Time epo t documents a e used to - co ect Answe -dete mine the g oss
r r R r r rr r r r



pay owed to employees

Custome Pu chase o de s a e used to - co ect Answe -dete mine the quantities to ship to
r r r r r rr r r



custome and amount to bill. r




Sales Invoices a e used to - co ect Answe -p ovide info mation to the custome and fo r rr r r r r r



eco ding sales t ansactions.
r r r




Monthly Bank Statements a e used to - co ect Answe -p ovide info mation to dete mine r rr r r r r



whethe the company o bank has e o o omissions eco ding cash eceipts and
r r rr r r r r r



disbu sements. r




A useful distinction between diffe ent documents thei - co ect Answe -sou ce. i.e. a e they r r rr r r r



inte nally o exte nally p epa ed.
r r r r r




inte nally p epa ed documents a e p epa ed by - co ect Answe -an inside within the
r r r r r r rr r r



company fo the company's use. r




exte nally p epa ed documents a e p epa ed by - co ect Answe -an outside of which the
r r r r r r rr r r



company is doing business with.

A second distinction about documents is when they a e p epa ed, elative to - co ect r r r r rr



Answe -when the t ansactions occu s. r r r