What accounts are considered temporary?
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- What accounts are considered temporary?
- Describe the process to close these temporary accounts?
- list the steps in the accounting cycle and describe the importance of each step ?
- What is liquidity? What is solvency? How are these evaluated in a business ?
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- What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.List the classification of each of the following accounts as A (asset), L (liability), OE (owners equity), R (revenue), or E (expense). Write Debit or Credit to indicate the increase side, the decrease side, and the normal balance side. PART 1: The Accounting Cycle for a Service Business: Analyzing Business TransactionsWhat accounts are considered temporary? Describe the process to close these temporary accounts. Please list the steps in the accounting cycle and describe the importance of each step. What is liquidity? What is solvency? How are these evaluated in a business?
- Describe the steps involved in closing the books. What is the most important output of the accounting cycle? What would happen if the books were never closed?Which of the following is NOT correct about the importance of accounting? Select one: a. It ensures that transactions are recorded for future reference. b. It can assist the users to identify the financial position of an organization, whether the company is making a profit or a loss and the necessary follow-up actions that should be taken c. It can help to improve the salary of the employees d. It can provide a picture of the financial position of a business1, How can we summarize data to prepare the financial statements? 2, what are closing entries and how do we record them? 3,how do decision-makers evaluate a company using the current ratio and debt ratio? 4, how does IFRS apply to the accounting cycle and financial reporting?
- What is the impact on the accounting equation when a payment of accountable payable is made? what is the impact on accounting equation when an account receivable is collected? what is the impact on the accounting equation when a sell occurs? what is the impact on the accounting equation when stock is issued, in exchange for assets? which of the following accounts is increased by a debit? which of the following camp do not increase with a debit entry? which of the following pairs increase with credit entries? which of the following pairs of accounts are impacted the same with debits and credits? which of the following count normally have a debit balance? what type of account is prepaid insurance?A company uses the direct write-off method to account for bad debts. What is the impact on the accounting equation of the entry to record the write-off of a customer’s account balance? Assets and liabilities decrease. Assets and shareholders’ equity decrease. Assets increase and shareholders’ equity decreases. Shareholders’ equity and liabilities decrease.Explain the closing process in accounting. Why is it important to classify permanent and temporary accounts? How is the account income summary used during the closing process?
- Which of the following, if performed by a firm as part of the accounting cycle, would not be considered part of the step in which the firm interprets the financial information? Multiple Choice determining how much the business owes its suppliers determining what the profit or loss was for the period determining how much customers owe the business determining the correct journal entry while analyzing a transactionselect the item that best completes each of the description below A____ of accounts is a list of all accounts a company uses not including account balance a____ contains a record of decreases and increases in a spefic revenue, expenses, asset, liability, or equity a___ is a record containing all accounts used by a company including account balance a___ had a complete record of every transaction recored a___ such as a bank statement is objective evidence of transaction and their amountsA company uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance? a. Assets increase and Stockholders' equity decrease b. Assets and Stockholders' equity decrease c. Stockholders' equity and liabilities decrease d. Assets and liabilities decrease
