Contra account examples - Study guides, Class notes & Summaries

2024|2025 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH CORRECT ANSWERS When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. Correct Answer: Conservatism Assumption States that an amount can be ignored if its effect on the financial statements is small and not misleading Correct Answer: Materiality Principle Once you adopt an accounting principle or method, continue to follow it consistently in future accounting peri...

Types of prevention - answer-primary- car restraints, bicycle helmets, immunizations secondary- prevent for those with RF-pap, mammo tertiary-mgmt of established disease- meds, lifestyle Primary - answer-Preventing the health problem, most cost effective form of healthcare **IMMUNIZATIONS, ensuring adequate illumination at home (preventing falls) Secondary - answer-Detecting disease in early asymptomatic stages, screenings -Early cause finding of asymptomatic disease via the use of a sc...

Accelerated Depreciation Methods - Correct Ans-Depreciation methods that recognize more depreciation expense in the early years and less in the later years. Double-declining balance is an example of an accelerated depreciation method. Accounting Equation - Correct Ans-Assets = Liabilities + Owners' Equity. This equation is fundamental and must always be true in double entry accounting. Accounting Period - Correct Ans-The period of time for which the financial results are reported; typic...

Distinguish between tangible and intangible assets -tangible assets have physical substance (examples: land, buildings, machinery, fixtures and equipment) depreciate all tangible assets except land -intangible assets have no physical substance (examples: trademarks, patents, copyrights) provide the owner with specific rights and privileges account for the purchase and sale of long-lived assets What costs to capitalize - include all costs necessary to acquire an asset and prepare it for its inte...

ACA Accounting Exam Questions and Answers 100% Verified and Updated Which of the following would require adjustments to the cash at cash account in a bank reconciliation? 1. Bank charges 2. Unpresented cheques 3. Returned cheques 4. Uncleared lodgements Bank charges and returned cheques Unpresented cheques and uncleared lodgements are just timing differences What is the double entry for VAT (purchases)? D/R Purchases (Net) D/R VAT C/R Trade Payables (Gross) What is the double entry...

ACA Accounting Exam Questions and Answers 100% Verified and Updated Which of the following would require adjustments to the cash at cash account in a bank reconciliation? 1. Bank charges 2. Unpresented cheques 3. Returned cheques 4. Uncleared lodgements Bank charges and returned cheques Unpresented cheques and uncleared lodgements are just timing differences What is the double entry for VAT (purchases)? D/R Purchases (Net) D/R VAT C/R Trade Payables (Gross) What is the double entry...

Which additional income statement items do merchandizing businesses use beyond the measures service businesses use? correct answers cost of goods sold and gross profit A physical count of inventory at the end of the accounting period is required under which inventory system(s)? correct answers Periodic system Some companies may prefer to use a periodic inventory system because they correct answers prefer not to keep detailed records of inventory on hand. an enterprise that buys and sell...

Test Bank For Financial Accounting 3rd Edition By Christopher Burnley. ACCOUNT CLASSIFICATION AND PRESENTATION Normal Account Title Classifi cation Financial Statement Balance A Accounts Payable Current Liability Statement of Financial Position Credit Accounts Receivable Current Asset Statement of Financial Position Debit Accumulated Depreciation— Plant Asset—Contra Statement of Financial Position Credit Buildings Accumulated Depreciation— Plant Asset—Contra Statement of Financi...

Accounting 200 Exam 1 Verified Answers 2 Types of Adjusting Entries ️Accruals - When revenue or expenses precedes the cash Deferrals - When revenue or expenses follow the cash 3 Types of Business Entities? ️1.) Sole Proprietorship - Simplest, most common - one person 2.) Partnership - Mutual Risk with partners 3.) Corporation - Double-taxation/Limited Liability A Debit to Retained earnings means... ️A Dividend was paid to shareholders Accounting Cycle (Definition) ️The proc...

ACA Accounting Exam Questions and Answers 100% Verified and Updated Which of the following would require adjustments to the cash at cash account in a bank reconciliation? 1. Bank charges 2. Unpresented cheques 3. Returned cheques 4. Uncleared lodgements Bank charges and returned cheques Unpresented cheques and uncleared lodgements are just timing differences What is the double entry for VAT (purchases)? D/R Purchases (Net) D/R VAT C/R Trade Payables (Gross) What is the double entry...