Exam 2: Review (Terms)

An adjusting entry could be made for each of the following except:

Owner Investments
Prepaid Expenses
Depreciation
Unearned Revenues
Accrued Expenses
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Terms in this set (15)
An adjusting entry could be made for each of the following except:

Owner Investments
Prepaid Expenses
Depreciation
Unearned Revenues
Accrued Expenses
Owner Investments
Records unpaid salaries of employees for work
Debit Salaries Expense & Credit Salaries Payable
Example of a current asset?
Accounts Recievable
Two common subgroups (liabilities) on classified balance sheet:
Current liabilities & noncurrent liabilities.
Usual order for classified balance sheet:
current assets

long-term investments

plant assets

intangible assets
Can cause Balance Sheet and Statement of Owner's Equity columns of a work sheet to be out of balance?
Entering revenue amount
Temporary accounts
Consulting Revenue

Withdrawals

Rent Expense

Income Summary
Reversing entries purpose:
simplify company's recording of future journal entries
Permanent Account
accounts payable
Closing Process:
ensure net income/net loss & owner withdrawals for period are closed
Which of the following accounts would be included in a post-closing trial balance?Accounts RecievableInternal Control Systems:required by Sarbanes-Oxley (SOX); requires a company document & certify if company's stock is traded on exchange.Impact of technology on internal controls:reduced processing errorsNumber of days' sales uncollected is used:to estimate time likely to pass before current amount (acct. recievable) received in cashA company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:Debit Cash Over and Short for $43.