Financial Accounting Chapter 1-4 Rutgers- || || || ||
Wasserman Exam with accurate detailed || || || || ||
answer
Account - ✔✔individual accounting record of increases and decreases in a specific asset, liability,
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or stockholder equity item
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Debit - ✔✔left side of account, debit balance shows if account debit amounts total more than
|| || || || || || || || || || || || || || || ||
credits
Credit - ✔✔right side of account, credit balance shows if account credit amounts total more than
|| || || || || || || || || || || || || || || ||
debits
Cash - ✔✔increase in cash= debit
|| || || || ||
decrease in cash= credit || || ||
Liabilities - ✔✔increase= credit || || ||
decrease= debit ||
L
Stockholder's Equity - ✔✔common stock: || || || || ||
increase= credit ||
decrease= debit ||
Retained Earnings - ✔✔increase= credit || || || ||
decrease= debit ||
RE
, Dividends - ✔✔increase= debit || || ||
decrease= credit ||
D
Revenues - ✔✔increase= credit || || ||
decrease= debit ||
R
Expenses - ✔✔increase= debit || || ||
decrease= credit ||
E
3 basic recording process steps - ✔✔1. analyze transaction for effects on accounts
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2. enter transaction into journal
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3. transfer journal info to appropriate accounts in the ledger
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Journal - ✔✔"book of original entry", shows debit and credit effects on specific accounts, two
|| || || || || || || || || || || || || || ||
amount columns, date, account title/explanations
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Journal Contributions - ✔✔1. discloses in one place the complete effects of a transaction
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2. provides a chronological record of transactions
|| || || || || ||
3. helps to prevent or locate errors due to ease of debit/credit comparison
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Journalizing - ✔✔companies make separate journal entries for each transaction
|| || || || || || || || ||
Complete Journal Entry - ✔✔1. date of transaction
|| || || || || || ||
Wasserman Exam with accurate detailed || || || || ||
answer
Account - ✔✔individual accounting record of increases and decreases in a specific asset, liability,
|| || || || || || || || || || || || ||
or stockholder equity item
|| || || ||
Debit - ✔✔left side of account, debit balance shows if account debit amounts total more than
|| || || || || || || || || || || || || || || ||
credits
Credit - ✔✔right side of account, credit balance shows if account credit amounts total more than
|| || || || || || || || || || || || || || || ||
debits
Cash - ✔✔increase in cash= debit
|| || || || ||
decrease in cash= credit || || ||
Liabilities - ✔✔increase= credit || || ||
decrease= debit ||
L
Stockholder's Equity - ✔✔common stock: || || || || ||
increase= credit ||
decrease= debit ||
Retained Earnings - ✔✔increase= credit || || || ||
decrease= debit ||
RE
, Dividends - ✔✔increase= debit || || ||
decrease= credit ||
D
Revenues - ✔✔increase= credit || || ||
decrease= debit ||
R
Expenses - ✔✔increase= debit || || ||
decrease= credit ||
E
3 basic recording process steps - ✔✔1. analyze transaction for effects on accounts
|| || || || || || || || || || || ||
2. enter transaction into journal
|| || || ||
3. transfer journal info to appropriate accounts in the ledger
|| || || || || || || || ||
Journal - ✔✔"book of original entry", shows debit and credit effects on specific accounts, two
|| || || || || || || || || || || || || || ||
amount columns, date, account title/explanations
|| || || ||
Journal Contributions - ✔✔1. discloses in one place the complete effects of a transaction
|| || || || || || || || || || || || ||
2. provides a chronological record of transactions
|| || || || || ||
3. helps to prevent or locate errors due to ease of debit/credit comparison
|| || || || || || || || || || || ||
Journalizing - ✔✔companies make separate journal entries for each transaction
|| || || || || || || || ||
Complete Journal Entry - ✔✔1. date of transaction
|| || || || || || ||
