Accountıng I

Yanıt Açıklaması: The correct answer is B. The basic accounting equation consists of assets = liabilities + owner's equity.

Yanıt Açıklaması: The asset ‘Cash’ increases 1.500 TL and asset ‘Accounts Receivable’ increases 1,500 TL revenue account ‘Service Revenue’ increases 3,000 TL.

Yanıt Açıklaması: Owner’s equity is the total assets of an entity, minus its total liabilities. The correct answer is C.

Yanıt Açıklaması: The steps in accounting cycles briefly are: • 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: A chart of accounts is a created list of the account names used by an organization to define each class of items. A chart of accounts is used to organize a company’s accounts. Chart of accounts is simply a list of account names that a company uses in its general ledger for recording various business transactions. It provides guidance to accountants or other relevant persons in using specific account names while recording transactions.

Yanıt Açıklaması: As the end of the period comes, adjusting entries are made to ensure the assets, liabilities and owner’s equity. After the adjustment transactions, adjusted trial balance is prepared, and financial statements are prepared afterwards. After the preparation of financial statements, the company journalizes and posts the closing entries. The final step of the accounting cycle is preparing the post-closing trial balance. Now, let’s summarize 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: Matching Principle , also referred as Expense Recognition Principl e is used to explain the relationship between expense and revenues. It means that you record the expenses at the same time with the revenues related with these expenses which are recorded regardless of the time cash is paid.

Yanıt Açıklaması: Matching Principle (Expense recognition principle) means that you will record the expenses at the same time with the revenues related with these expenses are recorded.

Yanıt Açıklaması: Beginning of the period activities deal with the opening transactions of the company. After the closing entries done for the previous term, the accounts have to be opened for the new fiscal year. The opening of the accounts is based on the opening balance sheet which is also the closing balance sheet of the ended period. Journal entry is recorded according to the opening balance sheet and accounts are posted to the ledger. Hereby, the accounts are now ready for daily transactions, in other words, the accounts are ready for during the period transactions.

Yanıt Açıklaması: There are four main factors which increase or decrease the level of owner’s equity: Contributions by owner(s), distributions to owner(s), revenues and expenses. D is the right answer.

Yanıt Açıklaması: Revenues and expenses are reported in the income statement ; assets, liabilities and owner’s equity are reported in the balance sheet.

Yanıt Açıklaması: Financial statements are prepared in order; • Income statement • Statement of owner’s equity • Balance sheet

Yanıt Açıklaması: Debit side

Yanıt Açıklaması: Cash is included in Typical Asset Accounts.

Yanıt Açıklaması: An account

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

Yanıt Açıklaması: A trial balance is a list of all ledger accounts with their balances at a point in time. A trial balance summarizes the accounts by listing all the accounts with their balances—assets first, followed by liabilities, and then owner’s equity. Do not confuse the trial balance with the balance sheet! A trial balance is an internal document used only by company insiders. Outsiders see only the company’s financial statements, not the trial balance.

Yanıt Açıklaması: Liquidity is the measure of how quickly and easily an account can be converted into cash.

Yanıt Açıklaması: Dolphin Inc. purchased supplies for 2.500 during 2017. At year end, Dolphin had 500 of supplies left. The adjusting entry should debit supplies expense 2.000.

Yanıt Açıklaması: Statement of cash flows is a financial statement that shows the change in cash position of the company over an accounting period. The correct answer is C.