FA W2

There are 6 steps to the accounting recording process. Name all 6

Debits mean ____, credits mean _______

Impact of Debits/Credits on Assets & Expenses?

Impact of Debits/Credits on Liabilities, Equity & Revenues?

What is Double entry accounting

On Journal Entries:
Every journal entry has ____ line for each account affected

On Journal Entries:
There are always at least _____ accounts affected

On Journal Entries:
The total of all debits must ....

Journal entries are generally formatted with the _____ first, then _______

Each journal entry has a _____ associated with the entry

What is a disadvantage of journal entries?

What is a T Account

Every T-account has a ______and an ______ balance, though the balance may be zero

A T-account covers activity for a period of _______

Every transaction will affect at least ____ T-accounts

If you add the ending balances of all T-accounts,

Cost of Goods sold =?

Sales are considered ____

Revenue comes under ___

Prepayments from customers come under which part of the acctg equation?

How are prepayments categorized on the right side of the acctg equation?

When there is deferred revenue, what happens over time as services are provided in lieu of the pre-payment?

Is Deferred Revenue a Revenue account?

Walk thru the steps of prepayment and it's exact impact on journal entries

What account does prepaid expense fall under?

Business pays $1200 in Prepaid Insurance for 1 year. What are the journal entries from Date of payment to the end of the first month?

After T-Accounts, what's the next step?

When businesses are recording transactions in their financial records, they use smaller groupings called ___