When doing a financial report the general goals are pretty obvious. A financial report is a way to show the intake and the out take of a business such as the rent of a building which would be the debit. The credit would be an example of common stock. As I was working on Appendix C I had to stop and think about debit and credit and what they actually meant. Debit is a source of an outcome‚ which means that money is being removed. Credit is when there is income being added. The steps that I took in
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UNIVERSITY OF PHOENIX 9 Steps of the Accounting Cycle XACC/280 1/28/2014 The nine steps of the accounting cycle helps you prepare an accurate closing trail balance. By doing these steps correctly will eliminate recording errors whether they are positive or negative. The first step is to analyze all the transactions made during the period of time the trial balance is for whether it is weekly‚ monthly or quarterly which really depends on how big is the business. The next
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Accounting is somewhat of a foreign language to me because I am not very good at organizing and balancing my expenses verses my income but I do own a car as well as have a mortgage and all the bills that follow so it does get taken care of. The place to begin when attempting to explain the basics of accounting is by follows a simple equation were the assets of the company (cash‚ equipment‚ supplies‚ any type of capital‚ furniture‚ and banking accounts) must be equal to the liabilities (bills‚ wages
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Grade Details - All Questions-Unit 6 | 1. | Question : | On March 1‚ a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would | | | Student Answer: | | increase a liability account | | | | decrease an asset account | | | | decrease a revenue account | | | | decrease a liability account | | | | | 2. | Question : | The income statement is prepared from:
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Financia Accounting a Accounting: American Professors‚ “Accounting is an information system for measuring‚ processing‚ and communicating information that is useful in making economic deciesions”. Indian professor‚ “Accounting is a ‘vision’ of business. Since accounting farnishes the ‘eye’ through which business and administration ‘sec’” Bangladeshi Professor‚ “Accounting is the concrete economic science”. Accounting consist of three basic activities * It identifies * Recordsa
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A.PREPAID EXPENSES This is an expense that is already paid but not incurred. This is exactly the opposite of accrued expense. There are two methods or approaches that can be used in recording prepayments‚ namely: Expense Method and Asset Method. a. Expense Method- under this method or approach‚ an expense ................account is debited upon payment of the prepaid expense. ................This method is also called “nominal approach” because ................an expense is an Income Statement
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For solo and small firm lawyers‚ handling finances can be a daunting task. Think about it. You just started your own firm. You have few‚ if any‚ clients‚ and you are using your savings and credit cards to finance the business. Sure‚ you may‚ like me‚ have an accountant who handles your taxes‚ but because accountants and other financial professionals charge for their time‚ just as we do‚ you tend to do anything you can to avoid incurring that expense until tax season rolls around. You could hire a
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Recording Financial Transactions Specimen Exam applicable from June 2014 Time allowed: 2 hours ALL 50 questions are compulsory and MUST be attempted. Do NOT open this paper until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association of Chartered Certified Accountants Paper FA1 FOUNDATIONS IN ACCOUNTANCY ALL 50 questions are compulsory and MUST be attempted Please use the space provided on the inside cover of the Candidate Answer Booklet
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Chapter 11 Homework Page 1 of 2 [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. 2012 Apr. 20 Purchased $36‚500 of merchandise on credit from Locust‚ terms are 1/10‚ n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day‚ $35‚000 note bearing 7% annual interest along with paying $1‚500 in cash. July 8 Borrowed
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LedgeAccount (Also known as "T" Account and Account) Having passed the double or journal entries‚ the next step is to post these double or journal entries into Ledger accounts. Ledger account or an account is simply the classification of double entries which we have made in General Journal or any other journal. In an account we bring together all similar entries in one place. For example a company has purchased goods on 4th and 7th January‚ we would put both entries in purchases account because
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