Scheduled maintenance: Wednesday, February 8 from 10PM to 11PM PST
Upgrade to remove ads
Only $35.99/year

Accounting final exam

Terms in this set (16)

Footings in T accounts
Are used for accounts with more than one debit or credit
is a method of matching an assets original cost against the revenues produced over is useful life
Depreciation
Assets that are expected to serve the business for many years
Property, plant, and equipment
Accounts that do not accumulate information across accounting periods but are closed, such as the drawing account and all income statement accounts
Temporary accounts
Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet
permanent accounts
The process of giving zero balances to the temporary accounts so that
They can accumulate information for the next accounting period
Accounting cycle
The period of time require to purchase supplies and services and convert them back into cash
Operating cycle
Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts
Post-closing trial balance
A balance sheet in with the liabilities and the owners equity sections are shown below the assets section
Report form of balance sheet
A temporary account used in the closing process to summarize the effects of all revenue and expense accounts
Income summary
Obligations that are lot expected to be paid within a year and do not require the use of current assets
Long-term liabilities
Obligations that are due within either one year or the normal operating cycle of the business, whichever is longer, and that are to be paid out of current assets
Current liabilities
Cash and assets that will be converted into cash or consumed within either one year or the normal operating cycle of the business, whichever is longer
Current assets
The steps involved in accounting for all of the business activities during an accounting period
Accounting cycle
A balance sheet in which the assets are on the left and the liabilities and the owners equity sections are on the right
Account form of balance sheet
A balance sheet with separate categories for current assets; property, plant, and equipment; current liabilities and long-term liabilities
Classified balance sheet
Students also viewed