FASB is the common abbreviation for the Board that currently establishes financial accounting and
reporting standards in the U.S. (Enter the acronym.)
Information that best explains companies' stock price performance is reported in the Income
Statement
Which of the following represents the net income earned by a corporation and not yet paid
to shareholders? Retained Earnings
A transaction is initially recorded in the journal, and then subsequently posted to the
general ledger
A(n) account is maintained for each financial statement item, whereas a(n) general ledger
contains all of the accounts of the company.
A list of all accounts and their balances at a particular date showing that debits equal
credits is referred to as a trial balance
Which of the following contains a list of transactions affecting each account and the
account's balance? General Ledger
Journal - record a chronological listing of every transaction for a company.
The process of transferring information from the journal to the ledger is referred to as
posting
Reporting revenues only when cash is received and expenses only when cash is paid is
called the
cash
basis of accounting.
In an adjusting entry for expenses incurred but not yet paid a liability is increasing since
cash will be paid in the future due to the expense incurred
Reason:
- Adjusting entries for accruals relate to entries that record revenues and expenses
earned or incurred during the period prior to when the cash changes hands. Accrual
adjustments include increasing assets and revenue or increasing expenses and
liabilities. No cash is involved in adjusting entries.
The adjusting entry for an accrued revenue always includes: (Select all that apply.)
1) a debit to an asset account – Accounts Receivable
2) a credit to a revenue account – Service Revenue