By Elizabeth A Minbiole
CliffsQuickReview path publications conceal the necessities of your hardest periods. Get an organization grip on center techniques and key fabric, and try out your newfound wisdom with overview questions.CliffsQuickReview Accounting ideas I is your logical, easy-to-grasp consultant to figuring out the language of industrial. This advisor introduces each one subject, defines key phrases, and walks you thru every one pattern challenge step by step. very quickly, you can be able to take on the major thoughts during this ebook such asGenerally accredited accounting principlesDouble-entry bookkeepingAdjustments and monetary statementsInventory systemsSubsidiary ledgers and specified journalsCash controlsEvaluating debts receivableOperating assetsCliffsQuickReview Accounting ideas I acts as a complement in your textbook and to school room lectures. Use this reference whatsoever that matches your own sort for examine and overview — you choose what works top together with your wishes. even if you learn the booklet from disguise to hide or specialise in pick out issues, you usually get transparent, jargon-free causes of the basics, supplemented with equations, charts, and tables.With titles on hand for all of the most well-liked highschool and school classes, CliffsQuickReview publications are a finished source which may assist you get the very best grades.
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Extra info for Accounting Principles I (Cliffs Quick Review)
Examples of unrecorded revenues may involve interest revenue and completed services or deliv ered goods that, for any number of reasons, have not been billed t o customers . Suppose a customer owes 6% interest on a three-year, $10,000 note receivable but has not yet made any payments . At the end of each accounting period, the company recognizes the interes t revenue that has accrued on this long-term receivable. ACCOUNTING PRINCIPLES I 41 ADJUSTMENTS AND FINANCIA L STATEMENTS Unless otherwise specified, interest is calculated with the following formula: principal x annual interest rate x time period in years .
Debit Credi t 20X7 Jan_31_ Insurance Expense 550 300 _____ _ Prepaid Insurance 145 ____________ 300 _____ Expired insurance _______________ _ Insurance Expense Date Explanation Ref. 20X7 Jan. 31 Expired insurance_ _ _ JGJI 55 0 Debit Credit Balance _ _00 ____ _ _ 30 0 Prepaid Insurance 14 5 Date Explanation Ref. Debit Credit Balance 1,800 20X7 Jan _31 Expired insurance_ _ _ GJ 1 _ _ _ _ _ _ _ _ _ 300 _ _ 1,500 - ----- --------------- ACCOUNTING PRINCIPLES I ----- - -- -- 47 ADJUSTMENTS AND FINANCIA L STATEMENTS Prepaid expenses in one company's accounting records are ofte n but not always unearned revenues in another company's accountin g records .
The General Ledge r After journalizing transactions, the next step in the accounting process is to post transactions to the accounts in the general ledger . Although T accounts provide a conceptual framework for understandin g accounts, most businesses use a more informative and structure d spreadsheet layout . A typical account includes date, explanation, an d reference columns to the left of the debit column and a balance column to the right of the credit column . The reference column identifie s the journal page containing the transaction .
Accounting Principles I (Cliffs Quick Review) by Elizabeth A Minbiole