Deferral Adjustments

Deferral Adjustments Accrual Adjustments Accounting Process Other Terms Review Potpourri $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $300 $300 $300 $300 $300 $400 $400 $400 $400 $400 $500 $500 $500 $500 $500

Deferral Adjustments - $100 Type of adjustments used for updating accounts. Involves previously recorded transactions. What are Deferral Adjustments? Back to Board

Deferral Adjustments - $200 The type of account (balance sheet or income statement) that a deferral adjustment causes to decrease. What is “balance sheet”? Back to Board

Deferral Adjustments - $300 The accounts affected when a physical count discovers that $50 of supplies were used in the period. What are Supplies Expense (increase, debited) and Supplies (decrease, credited) Back to Board

Deferral Adjustments - $400 Accounts affected when $200 of prepaid insurance is used up during the period. What are Insurance Expense (increase, debited) and Prepaid Insurance (decrease, credited)? Back to Board

Deferral Adjustments - $500 The accounts affected when part of the cost of property and equipment are expensed in accordance with the matching principle. What are Depreciation Expense (increase, debited) and Accumulated Depreciation: Property and Equipment (increase, credited) Back to Board

Accrual Adjustments - $100 Type of adjustment used to include transactions that were not previously recorded. What are Accrual Adjustments? Back to Board

Accrual Adjustments - $200 Direction that the accounts in an accrual adjustment change relative to each other (same or opposite direction). What is “the same direction”? (i.e., increases in assets correspond with increases in related revenue accounts; increases in liabilities correspond with increases in expenses) Back to Board

Accrual Adjustments - $300 Accounts affected when you record interest earned but not yet received. What are Interest Receivable (increase, debited) and Interest Revenue (increase, credited)? Back to Board

Accrual Adjustments - $400 This adjustment should be made after adjusting all other revenue and expense accounts because the amount of this adjustment depends on the adjusted revenues and expenses. What is the adjustment for Income Tax Expense and Income Taxes Payable? Back to Board

Accrual Adjustments - $500 One account NEVER involved in adjusting journal entries. What is the Cash account? Back to Board

Accounting Process - $100 A list of all accounts and their adjusted balances to check on the equality of recorded debits and credits; prepare after the AJEs are posted. What is the Adjusted Trial Balance? Back to Board

Accounting Process - $200 An internal report prepared before AJEs are prepared. What is “unadjusted trial balance”? Back to Board

Accounting Process - $300 DAILY DOUBLE!!!

Accounting Process - $400 Completed as the last step in the accounting cycle to check for equality of debits and credits, and to ensure that all temporary accounts have been closed. What is the Post-Closing Trial Balance? Back to Board

Accounting Process - $500 After all temporary accounts have been closed, the balance in the Retained Earnings account agrees with the number calculated on this financial statement. What is the Statement of Retained Earnings (or Balance Sheet)? Back to Board

Other Terms - $100 These accounts track financial results from year to year by carrying their ending balances into the next year. What are Permanent Accounts? Back to Board

Other Terms - $200 This account records the total amount of depreciation recorded against an asset since its purchase. What is Accumulated Depreciation? Back to Board

Other Terms - $300 Entries used at the end of each accounting period to update and include all revenues and expenses of that period. What are Adjusting Journal Entries? Back to Board

Other Terms - $400 Accounts immediately affected by the declaration of dividends. What are Dividends Declared (increase, debited) and Dividends Payable (increase, credited)? Back to Board

Other Terms - $500 An account that is offset to, or a reduction of, another account. What is a Contra-Account? Back to Board

Review Potpourri - $100 The general category of transactions that cause a decrease in Net Income. What are expenses? Back to Board

Review Potpourri - $200 The point at which expenses are incurred. What is “when economic benefits of an item are used up in the current period”? Back to Board

Review Potpourri - $300 Two equalities that must be maintained for every transaction. What is debit=credit and A=L+SE? Back to Board

Review Potpourri - $400 The policy that explains when a company reports revenues as earned. What is “Revenue Recognition Policy”? Back to Board

Review Potpourri - $500 The requirement that expenses be recorded in the period in which they are incurred to generate revenue. What is the Matching Principle? Back to Board

Daily Double • Specify Your Wager!

Accounting Process --- Accounts of this type are closed to permanent accounts at the end of each fiscal year. What are Temporary Accounts? Back to Board

Deferral Adjustments