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Description
Flashcards by chantal Seguin, updated more than 1 year ago
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Created by chantal Seguin
almost 9 years ago
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| Question | Answer |
| What is a reversing entry? | a receivable previously written off i paid |
| When purchasing merchandise what are the debits account in the transaction? | you would debit the asset account |
| What is recorded in the cash receipt journal? | The cash receipt journal would include cash purchases and sales |
| What is the balance of the account receivable control account equal? | Subsidiary Ledger |
| What are the negative amounts in a journal? | Credits |
| What does this mean: 2/10n/30 | 2 days / 10 days / 30 days |
| If your business is registered with CRA what must you do in respect with HST? | 30,000.00 or more to recieve a gst/hst number |
| What affects the HST charge in the invoice? | any price variations, or discounts |
| With respect to the petty cash account, a debit is recorded in what account? | petty cash account |
| When a cheque is returned NSF what happens? | the bank notifies the firm by sending a debit memorandum (rubber checks) and usually have fees attached (nsf fee) |
| What is claim code based on? | a claim code is based on the total personal amount an employee claim in the TD1 form |
| In basic journal entry for payroll what are all deductions credited to? | payroll liabilities |
| partnership agreements are? | business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. |
| what is a retained earnings? | Retained earnings is the percentage of net earnings not paid out as dividends |
| what is an allowance for doubtful accounts? | it the accounts receivable that likely wont ever pay, or never collected |
| What happens what a receivable has previously been written off and is now being paid? | This transaction requires two entries. The first entry will restore the balance in accounts receivable. The second entry will show the receipt of the payment. It seems counterintuitive to restore the balance to pay it off, but for recordkeeping purposes, it is necessary to restore the account balance and show the customer properly paid his debt. |
| What does the interim statement of profit or loss show? | revenues and expences |
| When does a loss show? | in the income statement |
| what is perpetual inventory method? | information on inventory quantity and availability is updated on a continuous basis as a function of doing business. |
| what is accrued revenue? | The income has been earned but the revenue has not been received |
| What is a journal entry that will close all temp accounts with credit balances? | income summary |
| GAAP | Generally accepted accounting principals |
| What is GAAP? | the objectivity principal |
| what accounts you put money in when you receive money from clients | Trust Account |
| transactions between trust accounts ... what form? | form 9 to transfer out |
| What is an internal control process ? | any precautions that you set for your company to reduce problems |
| What is a cheque preparation policy? | original copies stamped paid to prevent invoices being paid more then once |
| How long is a financial institution required to keep financial records? | 6 years ... but written request for destruction is recommended |
| What does bylaw 9 deal with? | FINANCIAL TRANSACTIONS AND RECORDS |
| When do you open a trust account? | through a bank registered with LSUC |
| Does the law society mandate the type of practice you may use | manual ledgers “one-write” systems spreadsheet software general accounting software legal accounting software |
| What does firm or licensee mean? | A licensee is someone who has been granted a licence "Firm" is often used interchangeably with "business" or "enterprise." |
| what is Internal control? | any precautions that you set for your company to reduce problems |
| what are Trust records? | trust records are detailed journals listing the transactions of the trust account |
| what are Charge cards sales slips ? | a receipt no firm may bill a client for the fee of moneris use. |
| Importance of bookkeeping from the LSUC prospective | paralegals have added obligations to maintain accurate records because they hold funds in trust for their client |
| what are the Various types of trust accounts | mixed / pooled or Separate interest bearing trust account |
| what is the Importance of general account | every firm MUST have a general account for day to day banking |
| criteria the LSUC has established for general monetary retainers (how much money can you take?) | maximum cash accepted is $7,500.00 to avoid money laundering |
| What party of trust account records should be kept for 6 years? | Everything .... since you must keep records for 6 years from the end of the year to which they relate |
| owners equity represents? | the value of assets remaining after all debts have been deducted |
| What is an audit trail and why is it important? | proves to investors or lenders the information on the financial statements, is true and meets requirements for tax purposes. |
| internal users, external users, and government users r exempt of: | stakeholders |
| What is a proprietorship? | a business owned by one person |
| Know the definition of liability (liability accounts) | liability is money owed , and marked on the right hand side |
| Know what the accounting equation is, what financial statement would show the accounting equation? | Assets = Liabilities + owners equity (ALOE) |
| What journal would show a cash sale transaction? | Cash account |
| What is a trial balance? | a list of journals and ledgers and all balances |
| What do you use debits and credits for? (What is the debit and credit column on the ledger, how do you use it?) | a debit is an increase in asset or a decrease in liability credit is increase in liability or decrease in asset |
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