Accounting Cycle Justin McKibben ACC/421 July 1, 2013 Ric Hedges Accounting Cycle Houston Federal Credit Union is a financial institution in Sugar Land, TX and is responsible for providing financial services for its members. The accounting cycle at the organization is a typical cycle of any standard financial institution. The procedures of the accounting cycle must be in the guidelines set forth by GAAP. The employees of the organizations accounting department confirm with the rules and
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The accounting equation Kenneth Myers Sr. ACC/300 March 19,2014 Harri Elornta The accounting equation The Accounting Equation What is the accounting equation ? The accounting equation is, Assets = liabilities + owners’ equity. Each of these element assets, liabilities, owners equity has their own exclusive purpose within the accounting equation. Each side of the accounting equation should balance at all times. The balance sheet is where this equation is normally used. Assets Anything
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Financial recording is a necessary action to ensure that businesses can keep accurate, easy to understand records off all financial transactions that occur during the conduct of business. The major function of these financial reports, other than record keeping, is to ensure the balance of all debits and credits. When we create accounts, T accounts, we always insert debits on the left side and credits on the right side of the account; this provides a uniform system for accountants while enabling
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profit and the solvency of the company. Before you can understand accounting you need to familiarize yourself with the basic terminology of accounting. Debits and credits are used to describe the transactions recorded to the accounts in a double entry system. A debit is a transaction of value added to an account. A credit is value removed from the account. Accounts are established to provide a record of individual transactions of the business. A group of accounts are called a general
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not a liability. One example of this type of revenue is something such as a retainer fee given to an attorney. The fee is received prior to them completing the service that is being paid for. Once the process has been completed and the service takes place, then it is considered to have been earned and no longer a liability. Accrued revenues are pretty much the opposite of unearned revenues. Accrued revenues are goods or services that have been earned, but have yet to been paid for. Accrued revenue
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IMPORTANCE OF ADJUSTMENT ENTRIES Importance of Adjustment Entries Jourdain M. Yardan American Intercontinental University IMPORTANCE OF ADJUSTMENT ENTRIES ABSTRACT Adjustment entries are made to handle issues that occur from events that directly affect expenses and revenue for accounting periods. The four types of accounting entries are accrued revenues, unearned revenues, accrued expenses, and
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The Oxford Company has budgeted sales revenues as follows: July August September Credit sales $30,000 $24,000 $18,000 Cash sales 18,000 51,000 39,000 Total sales $48,000 $75,000 $57,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase.
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What is a contingent liability? A contingent liability is a potential liability…it depends on a future event occurring or not occurring. For example, if a parent guarantees a daughter’s first car loan, the parent has a contingent liability. If the daughter makes her car payments and pays off the loan, the parent will have no liability. If the daughter fails to make the payments, the parent will have a liability. If a company is sued by a former employee for $500,000 for age discrimination,
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FRANK WOOD’S business accounting TENTH EDITION 1 FRANK WOOD & ALAN SANGSTER Additional student support at www.pearsoned.co.uk/wood FRANK WOOD’S business accounting 1 Visit the Business Accounting, tenth edition Companion Website at www.pearsoned.co.uk/wood to find valuable student learning material including: l l l l l l Learning objectives for each chapter Multiple choice questions to help test your learning Review questions and answers Links to relevant sites on the web
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See answers below the final exam. 1) Which financial statement is used to determine cash generated from operations? A. Income statement B. Statement of operations C. Statement of cash flows D. Retained earnings statement 2) In terms of sequence, in what order must the four basic financial statements be prepared? A. Balance sheet, income statement, statement of cash flows, and capital statement B. Income statement, capital statement, statement of cash flows
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