Accounting Chapters 1-4 Flashcards
Assets =
liabilities + equity
net income or net loss =
revenues - expenses
ending retained earnings =
beginning retained earnings + net income/loss - dividends
return on assets =
net income / average total assets
increases on debit
assets, dividends, and expenses
increased on credit
liabilities, common stock, and revenues
debit ratio =
total liabilities / total assets
deferred expenses / prepaid expenses journal entry
debit: expense
credit: asset
deferred revenues / unearned revenues journal entry
debit: liability
credit: revenue
accrued expenses journal entry
debit: expense
credit: liability
accrued revenues journal entry
debit: asset
credit: revenue
what is reported on the income statement?
revenues, expenses, and net income/loss
what is reported on the balance sheet?
assets, liabilities, and stockholders equity
what accounts get closed at the end of the cycle?
revenue, expenses, income summery, and dividends accounts
What accounts appear on the post closing trial balance?
only assets, liabilities, common stock, and retained earnings
