Financial Accounting Test #1 Study Guide Questions And Correct Answers

Posting {Ans: process of updating the ledger accounts using the data in the journal entries}Deferral Adjustment Definition {Ans: to reduce assets for a loss in value and to reduce unearned revenue for the portion that has been earned}What does DEALER stand for? {Ans: Dividend +Expenses + Assets = Liabilities + Equity + Revenues DEA on the left LER on the right}Our company agrees to hiring a landscaping company to provide $500 in lawn services. No payment is made at the time of the agreement and no work has yet been performed by the landscaping company. The related journal entry would be: {Ans: There would be no journal entry made at this time}Revenues {Ans: Income, sales, earnings, etc. The total values of work performed or sales earned during the month. Earnings = Revenue}Assets {Ans: money and other valuables belonging to an individual or business that will continue to benefit the company after current month is over}