Lernkarten

Karten 41 Karten
Lernende 0 Lernende
Sprache English
Stufe Universität
Erstellt / Aktualisiert 09.10.2017 / 09.10.2017
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0 Exakte Antworten 41 Text Antworten 0 Multiple Choice Antworten
Fenster schliessen

what's the difference between cash basis accounting and accrual basis accounting

Cash basis--> only recorded when cash is received or paid, not allowedunder GAAp

Accrual basis--> revenue is recorded when earned and expensesare recorded when incurred, used by most businesses

Fenster schliessen

what is the Revenue Recognition principle?

Record revenue when earned(when a project is finished), revenue is based on selling price(e.g. sale price)

Fenster schliessen

what is the difference between revenues and gains?

Revenue --> sales to customers,services etc.

Gains --> sale price in excess of book value (real estate)

Fenster schliessen

what is the difference between deferrals and accruals?

Deferrals:cash is involved prior to recognition

Accruals:cash involved after recognition

Fenster schliessen

What is the difference between a deffered expense and an accrued expense?

Deffered expense: advance payments for future expenses

Accrued expense:expenses a business has incurr3ed but has not yet been paid

Fenster schliessen

what is the difference between deferred revenues and accrued revenues?

Deffered revenues: occurs when a company receives cash before it does the work or delivers a product

Accrued Revenue:Company performs a service or delivers a product but has not yet been paid

Fenster schliessen

what is the booking sentence if you paid rent in advance and how can you adjust it on dec. 31

Prepaid Rent/ Cashr

Rent Expense/Prepaid rent

Fenster schliessen

what is the booking sentence if you purchased 500 in booking supplies and by dec.31.only 100 worth of supplies remain on hand?

supplies expense/office supplies 400