Chapter 5 Jeopardy By: Ms. Lapointe Exam: Matching, True or False, Debit or Credit Balances, GAAPs, Problem (you have a trial balance, find errors, complete worksheet, create an income statement and balance sheet)
Jeopardy GAAPDefinitionsStepsDR/CR
Category 1 $100 Assumes you can define revenue, revenue must be recognized at the time when the sale of service (or goods) is made, and not when the cash is received from the customer
Category 1 $100 Revenue Principle
Category 1 $200 Assumes you can define expense, and it says that an expense must be accounted for when it is incurred, and not when the cash payment is made
Category 1 $200 Expense Principle
Category 1 $300 Revenues recognized during one accounting period must be matched with expenses incurred during the same accounting period. The net income or net loss can be calculated.
Category 1 $300 Matching Principle
Category 1 $400 Before a transaction can be recorded, it must have occurred. Physical proof or evidence is required to prove that a transaction took place, and such evidence is called a source document.
Category 1 $400 Objectivity Principle
Category 1 $500 All assets must be accounted for on the basis of how much was paid to get those assets. Second these same cost must be kept in the asset accounts even if the so-called market or current value has gone up.
Category 1 $500 Cost Principle
Category 2 $100 Long lived assets (building, land, etc)
Category 2 $100 Fixed Assets
Category 2 $200 Expired costs
Category 2 $200 Expenses – advertising bill, phone bill, costs used up to bring in revenue
Category 2 $300 Unexpired Costs
Category 2 $300 Assets – have not been used up so they are considered as assets
Category 2 $400 A balance sheet divided into groups of assets and liabilities
Category 2 $400 Classified Balance Sheet
Category 2 $500 The balance sheet with a vertical arrangement of A = L + OE
Category 2 $500 Report form balance sheet
Category 3 $100 Preparing Financial Statements What step of the accounting cycle?
Category 3 $100 Step 6
Category 3 $200 Posting
Category 3 $200 Step 3
Category 3 $300 Originating Data
Category 3 $300 Step 1
Category 3 $400 Preparing Trial Balance
Category 3 $400 Step 4
Category 3 $500 Worksheet
Category 3 $500 Step 5
Category 4 $100 What worksheet column would this item be transferred to (income statement or balance sheet) and tell me whether it is a DEBIT or CREDIT Rental Fees Earned
Category 4 $100 Income Statement Credit
Category 4 $200 Wages Expense
Category 4 $200 Income Statement Debit
Category 4 $300 Office Supplies on Hand
Category 4 $300 Balance Sheet Debit
Category 4 $400 Marketable Securities/Bonds/Investments
Category 4 $400 Balance Sheet Debit
Category 4 $500 Bank Loan
Category 4 $500 Balance Sheet Credit
Classified Report Form BS Owner: J. Thomas Central Rent a Car Dec. 31, 2009 Capital $9000 Net Income $18000 Drawings $ Cash $100 Accounts Receivable $400 Land $25500 Furniture $5000 Office Equipment $6000 Bank Loan Payable $1000 Accounts Payable $9000 Current Portion Mort Pay $6000 Mortgage Payable (secured by land) $6000 Create a classified balance sheet from an extra sheet in the problem handout.