Accountıng I

Yanıt Açıklaması: Employees and managers are internal information users.

Yanıt Açıklaması: Value and usefulness of plant assets will decline when the business uses them in its operations. The decline in usefulness of a plant asset is an expense which is called as a expense. Here the concept of depreciation emerges. Depreciable amount is the cost of an asset minus its residual value, and depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. In other words, depreciation is a cost allocation process over the plant asset’s useful life.

Yanıt Açıklaması: If the company has a profit at the end of the period, the credit balance of the Income Summary account is transferred to the credit side of Capital account, because profit increases the Capital. If there is a loss, the debit balance of the Income Summary account is transferred to the debit side of Capital account, because loss decreases the Capital.

Yanıt Açıklaması: • Accounts Payable. The Accounts Payable account is the opposite of Accounts Receivable. A or The company promises to pay a debt in the future. Arises from a credit purchase.

Yanıt Açıklaması: Statement of owner’s equity reports the changes in the capital throughout the period caused by the owner’s capital investments or withdrawals, net profit or loss.

Yanıt Açıklaması: Liabilities + Owner’s Equity =  Assets 5.000 +10.000 = 15.000

Yanıt Açıklaması: Book Value of an asset is the depreciable asset’s cost minus the asset’s accumulated depreciation.  The correct answer is A.

Yanıt Açıklaması: Assets are economic resources that provide a future benefit for a business –something the business owns. Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account. It arises from a credit sale. The company collects cash from the customer sometime after the sale.

Yanıt Açıklaması: The company will receive assets (for example, cash) in exchange for goods sold and services rendered. Therefore, company’s assets and owner’s equity will increase. The increase in owner’s equity created by delivering goods or services to customers is called revenue. The company uses as many revenue accounts as needed. Examples include Sales Revenue account, Service Revenue account, Interest Revenue account or Rent Revenue account.

Yanıt Açıklaması: Statement of cash flows is a financial statement that shows the change in cash position of the company over an accounting period. In other words, statement of cash flows summarizes information concerning the cash inflows (receipts) and outflows (payments) for a specific period of time.

Yanıt Açıklaması: Adjusting Entries are necessary every time financial statements are prepared.

Yanıt Açıklaması: In accrued expense, expense is recognized before the cash is paid. The correct answer is E.

Yanıt Açıklaması: Dr./Cr. Rules for Assets: Assets increase on left side by debiting while decrease on right side by crediting and normally show debit balance. Dr./Cr. Rules for Liabilities: Liabilities increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Contributions (Owner’s capital): Contributions increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Distributions (Owner’s withdrawals): Distributions increase on left side by debiting while decrease on right side by crediting and normally show debit balance. Dr./Cr. Rules for Revenues: Revenues increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Expenses: Expenses increase on left side by debiting while decrease on right side by crediting and normally show debit balance. The correct answer is A.

Yanıt Açıklaması: Now that the revenue accounts and expense accounts are closed and their balances were transferred to Income Summary account, the company may easily calculate its profit or loss.

Yanıt Açıklaması:

Yanıt Açıklaması: The steps in accounting cycles briefly: • Opening entries based on opening balance sheet • Posting opening entries to ledger accounts • Analyzing and journalizing daily transactions • Posting daily transactions to accounts • Preparing monthly trial balances • Preparing unadjusted trial balance at the end of the period • Adjusting entries • Preparing adjusted trial balance • Preparing financial statements • Closing entries • Preparing post-closing trial balance

Yanıt Açıklaması: Dr./Cr. Rules for Assets: Assets increase on left side by debiting while decrease on right side by crediting and normally show debit balance. Dr./Cr. Rules for Liabilities: Liabilities increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Contributions (Owner’s capital): Contributions increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Distributions (Owner’s withdrawals): Distributions increase on left side by debiting while decrease on right side by crediting and normally show debit balance. Dr./Cr. Rules for Revenues: Revenues increase on right side by crediting while decrease on left side by debiting and normally show credit balance. Dr./Cr. Rules for Expenses: Expenses increase on left side by debiting while decrease on right side by crediting and normally show debit balance. The correct answer is B.

Yanıt Açıklaması: Companies have two finance sources for their assets. They are liabilities and owner’s equity. Sources are classified according to their maturity dates on the balance sheet: from short-term maturity dates to owner’s equity which has an indefinite maturity date. Liabilities are the existing debts of the company. They are classified as current liabilities and non-current liabilities.

Yanıt Açıklaması: The journalizing and posting process has five steps: Step 1: Identify the accounts and the account types (asset, liability, or equity). Step 2: Decide whether each account increases or decreases and then apply the rules of debits and credits.Step 3: Record the transaction in the journal. Step 4: Post the journal entry to the ledger. Step 5: Determine whether the accounting equation is in balance.

Yanıt Açıklaması: ıt should be posting