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Flashcards in Accrual Acctg Deck (11)
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1

Prepaids are assets or liabilities?

Assets

2

Unearned revenue is an asset or liability?

Liability

3

What is the formula to convert NI from cash to NI accrual?

Add: Increases in Assets, Decreases in Liabilities
Subtract: Decreases in Assets, and Increases in Liabilities

4

What is the formula to convert NI accrual to NI from cash?

Add: Decreases in Assets, Increases in Liabilities
Subtract: Increases in Assets, and Decreases in Liabilities

5

Accrual acctg recognizes and reports economic activities for the period in which occurred. TF

True

6

What is the formula to convert cash COGS to accrual COGS?

Accrual COGS = Increase in inventory + Decrease in AP - Decrease in Inventory - Increase in AP - Cash Payments

7

What is the formula to convert accrual COGS to cash COGS?

Cash COGS = Decrease in inventory + Increase in AP - Increase in Inventory - Decrease in AP - Cash Payments

8

What is the formula to convert cash expenses to accrual expenses?

Accrual Expenses = Increase in prepaid expenses + Decrease in accrued expenses - Decrease in prepaid expenses - Increase in accrued expenses - Cash paid

9

What is the formula to convert accrual expenses to cash expenses?

Cash Expenses = Decrease in prepaid expenses + Increase in accrued expenses - Increase in prepaid expenses - Decrease in accrued expenses - Cash paid

10

What is the easiest way to solve cash to accrual and accrual to cash problems?

Summary journal entries.

11

What is the general procedure to convert cash to accrual and vice versa?

The effects of accruals and deferrals must be taken out