1. 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)

2. Jeopardy GAAPDefinitionsStepsDR/CR 100 200 300 400 500

3. 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

4. Category 1 $100  Revenue Principle

5. 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

6. Category 1 $200  Expense Principle

7. 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.

8. Category 1 $300  Matching Principle

9. 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.

10. Category 1 $400  Objectivity Principle

11. 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.

12. Category 1 $500  Cost Principle

13. Category 2 $100  Long lived assets (building, land, etc)

14. Category 2 $100  Fixed Assets

15. Category 2 $200  Expired costs

16. Category 2 $200  Expenses – advertising bill, phone bill, costs used up to bring in revenue

17. Category 2 $300  Unexpired Costs

18. Category 2 $300  Assets – have not been used up so they are considered as assets

19. Category 2 $400  A balance sheet divided into groups of assets and liabilities

20. Category 2 $400  Classified Balance Sheet

21. Category 2 $500  The balance sheet with a vertical arrangement of A = L + OE

22. Category 2 $500  Report form balance sheet

23. Category 3 $100  Preparing Financial Statements  What step of the accounting cycle?

24. Category 3 $100  Step 6

25. Category 3 $200  Posting

26. Category 3 $200  Step 3

27. Category 3 $300  Originating Data

28. Category 3 $300  Step 1

29. Category 3 $400  Preparing Trial Balance

30. Category 3 $400  Step 4

31. Category 3 $500  Worksheet

32. Category 3 $500  Step 5

33. 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

34. Category 4 $100  Income Statement  Credit

35. Category 4 $200  Wages Expense

36. Category 4 $200  Income Statement  Debit

37. Category 4 $300  Office Supplies on Hand

38. Category 4 $300  Balance Sheet  Debit

39. Category 4 $400  Marketable Securities/Bonds/Investments

40. Category 4 $400  Balance Sheet  Debit

41. Category 4 $500  Bank Loan

42. Category 4 $500  Balance Sheet  Credit

43. Classified Report Form BS  Owner: J. Thomas  Central Rent a Car  Dec. 31, 2009  Capital $9000  Net Income $18000  Drawings $18 000  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.