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SOURCE: Author Unknown

101001 - THERE ARE __________ BASIC STEPS IN THE 10; RECORDING; SUMMARIZING
ACCOUNTING CYCLE, WHICH INCLUDES 2 PHASES
KNOWN AS __________ AND __________.
101002 - STEPS IN THE SUMMARIZING PHASE OF 1. ANALYZING THE TRANSACTION
ACCOUNTING CYCLE (7 ITEMS) 2. JOURNALIZING
3. POSTING
4. UNADJUSTED TRIAL BALANCE
5. ADJUSTING ENTRIES
6. ADJUSTED TRIAL BALANCE
7. FINANCIAL STATEMENTS
8. CLOSING ENTRIES
9. POST-CLOSING TRIAL BALANCE
10. REVERSING ENTRIES
101003 - THIS IS WHERE THE ACCOUNTANT GATHERS ANALYZING THE TRANSACTION
INFORMATION FROM SOURCE DOCUMENTS AND
DETERMINES THE IMPACT OF THE TRANSACTION ON THE
FINANCIAL POSITION.
101004 - THIS IS THE PROCESS OF RECORDING THE JOURNALIZING
TRANSACTIONS IN THE APPROPRIATE JOURNALS.
101005 - IS A CHRONOLOGICAL RECORD OF JOURNAL
TRANSACTIONS ALSO KNOWN AS THE BOOK OF
ORIGINAL ENTRY.
101006 - IS A JOURNAL WHERE ALL TRANSACTIONS GENERAL JOURNAL
COULD BE RECORDED.
101007 - ARE JOURNALS USED IN RECORDING LARGE SPECIAL JOURNALS
NUMBERS OF LIKE TRANSACTIONS.
101008 - USUAL EXAMPLES OF SPECIAL JOURNALS (4 1. SALES JOURNAL
ITEMS) 2. CASH RECEIPTS JOURNAL
3. PURCHASES JOURNAL
4. CASH DISBURSEMENTS JOURNAL
101009 - IS A SPECIAL JOURNAL WHERE ONLY SALES OF SALES JOURNAL
MERCHANDISE ON ACCOUNT ARE RECORDED.
101010 - IS A SPECIAL JOURNAL WHERE ALL TYPES OF CASH RECEIPTS JOURNAL
CASH RECEIPTS ARE RECORDED.
101011 - IS A SPECIAL JOURNAL USED TO RECORD ALL PURCHASES JOURNAL
PURCHASES ON ACCOUNT OF MERCHANDISE,
EQUIPMENT, SUPPLIES, ETC.
101012 - IS A SPECIAL JOURNAL WHERE ALL PAYMENTS CASH DISBURSEMENTS JOURNAL
OF CASH FOR ANY PURPOSE ARE RECORDED.
101013 - TYPES OF JOURNAL ENTRIES ACCORDING TO 1. SIMPLE JOURNAL ENTRY
FORM (2 ITEMS) 2. COMPOUND JOURNAL ENTRY
101014 - IS A TYPE OF JOURNAL ENTRY WHICH CONTAINS SIMPLE JOURNAL ENTRY
A SINGLE DEBIT AND A SINGLE CREDIT ELEMENT.

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101015 - IS A TYPE OF JOURNAL ENTRY WHICH HAS TWO COMPOUND JOURNAL ENTRY
OR MORE ELEMENTS IN EITHER OR BOTH DEBIT AND
CREDIT SIDES AND OFTEN REPRESENTS TWO OR MORE
TRANSACTIONS.
101016 - ARE THE STORAGE UNITS OF ACCOUNTING ACCOUNTS
INFORMATION AND USED TO SUMMARIZE CHANGES IN
ASSETS, LIABILITIES AND EQUITY INCLUDING INCOME
AND EXPENSES.
101017 - ARE THE STATEMENT OF FINANCIAL POSITION REAL ACCOUNTS
OR SO CALLED PERMANENT ACCOUNTS. THESE
ACCOUNTS ARE NOT CLOSED AND CARRYOVER TO THE
NEXT ACCOUNTING PERIOD. (EX. CASH, AR AND PPE)
101018 - ARE THE INCOME STATEMENT OR TEMPORARY NOMINAL ACCOUNTS
CAPITAL ACCOUNTS. THESE ACCOUNTS ARE CLOSED AT
THE END OF THE ACCOUNTING PERIOD. (EX. SALES AND
EXPENSES)
101019 - WHILE STILL UNADJUSTED, REPRESENTS A MIXED ACCOUNT
COMBINATION OF REAL AND NOMINAL ACCOUNTS. (EX.
PREPAID EXPENSES)
101020 - IS THE GENERAL LEDGER ACCOUNT THAT CONTROL ACCOUNT
SUMMARIZES THE DETAILED INFORMATION IN A
SUBSIDIARY LEDGER.
101021 - IS AN ACCOUNT THAT HOLDS TEMPORARILY SUSPENSE ACCOUNT
CERTAIN INFORMATION PENDING FOR DISPOSITION.
101022 - HAS A COUNTERPART IN ANOTHER BOOK WITH RECIPROCAL ACCOUNT
IN THE ENTITY OR IN ANOTHER LEDGER OR ANOTHER
ENTITY.
101023 - IS THE PROCESS OF TRANSFERRING DATA FROM POSTING
THE JOURNAL TO THE APPROPRIATE ACCOUNTS IN THE
GENERAL LEDGER AND SUBSIDIARY LEDGER. THIS
PROCESS CLASSIFIES ALL ACCOUNTS THAT WERE
RECORDED IN THE JOURNALS.
101024 - INCLUDES ALL THE ACCOUNTS APPEARING ON GENERAL LEDGER
THE FINANCIAL STATEMENTS.
101025 - AFFORDS ADDITIONAL DETAIL IN SUPPORT OF SUBSIDIARY LEDGER
CERTAIN GENERAL LEDGER ACCOUNTS.
101026 - A LIST OF GENERAL LEDGER ACCOUNTS WITH TRIAL BALANCE
THEIR RESPECTIVE DEBIT OR CREDIT BALANCE.
101027 - ARE JOURNAL ENTRIES MADE AT THE END OF ADJUSTING ENTRIES
AN ACCOUNTING CYCLE TO UPDATE CERTAIN REVENUE
AND EXPENSE ACCOUNTS AND TO MAKE SURE YOU
COMPLY WITH THE MATCHING PRINCIPLE.

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101028 - CHARACTERISTICS OF ADJUSTING ENTRIES (3 1. USUALLY REFER TO TRANSACTIONS THAT HAVE

ITEMS) EFFECTS ON MORE THAN ONE ACCOUNTING PERIOD;
2. INCLUDE AT LEAST 1 NOMINAL ACCOUNT AND 1 REAL
ACCOUNT; AND
3. ARE GENERALLY NOT BASED ON SOURCE DOCUMENTS.
101029 - TYPICAL ADJUSTING ENTRY CLASSIFICATIONS (5 1. PREPAYMENTS
ITEMS) 2. DEFERRALS
3. ACCRUED EXPENSES
4. ACCRUED INCOME
5. ESTIMATES
6. ENDING INVENTORY
101030 - ARE EXPENSE ITEMS ALREADY PAID FOR BUT PREPAYMENTS
NOT YET INCURRED.
101031 - METHODS OF INITIALLY RECORDING 1. ASSET METHOD (DR. PREPAID EXPENSE; CR. CASH)
PREPAYMENTS (2 ITEMS) 2. EXPENSE METHOD (DR. EXPENSE; CR. CASH)
101032 - PRO-FORMA ADJUSTING ENTRIES FOR DR. EXPENSE - "EXPIRED PORTION"; CR. PREPAID
PREPAYMENTS WHEN THE ASSET METHOD WAS USED IN EXPENSE
INTIALLY RECORDING THE TRANSACTION
101033 - PRO-FORMA ADJUSTING ENTRIES FOR DR. PREPAID EXPENSE - "REMAINING PORTION"; CR.
PREPAYMENTS WHEN THE EXPENSE METHOD WAS USED EXPENSE
IN INTIALLY RECORDING THE TRANSACTION
101034 - ARE INCOME ITEMS ALREADY COLLECTED IN DEFERRALS (DEFERRED INCOME)
CASH BUT NOT YET EARNED.
101035 - METHODS OF INITIALLY RECORDING DEFERRALS 1. LIABILITY METHOD (DR. CASH; CR. UNEARNED
(2 ITEMS) INCOME)
2. INCOME METHOD (DR. CASH; CR. INCOME)
101036 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS DR. UNEARNED INCOME; CR. INCOME - "EXPIRED
WHEN LIABILITY METHOD WAS USED IN INITIALLY PORTION"
RECORDING THE TRANSACTION
101037 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS DR. INCOME; CR. UNEARNED INCOME - "REMAINING
WHEN THE INCOME METHOD WAS USED IN INITIALLY PORTION"
RECORDING THE TRANSACTION
101038 - OCCUR IN TRANSACTIONS WHERE EXPENSE HAS ACCRUED EXPENSE
ALREADY BEEN INCURRED BUT NOT YET PAID FOR IN
CASH.
101039 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED DR. EXPENSE; CR. PAYABLE
EXPENSES
101040 - OCCUR IN TRANSACTIONS WHERE INCOME HAS ACCRUED INCOME
BEEN ALREADY EARNED BUT NOT YET COLLECTED IN
CASH.
101041 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED DR. RECEIVABLE; CR. INCOME
INCOME
101042 - ARE ADJUSTING ENTRIES THAT DO NOT ESTIMATES
INVOLVE CASH FLOWS.

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101043 - COMMON EXAMPLES OF ESTIMATES THAT 1. PROVISION FOR DOUBTFUL ACCOUNTS

REQUIRE ADJUSTING ENTRIES (2 ITEMS) 2. DEPRECIATION
101044 - IS THE ESTIMATED AMOUNT OF BAD DEBT THAT PROVISION FOR DOUBTFUL ACCOUNTS
WILL ARISE FROM ACCOUNTS RECEIVABLE THAT HAVE
BEEN ISSUED BUT NOT YET COLLECTED.
101045 - IS THE SYSTEMATIC ALLOCATION OF THE COST DEPRECIATION
OF A FIXED ASSET OVER ITS USEFUL LIFE.
101046 - IS AN ADJUSTMENT USED TO SET UP THE YEAR- ENDING INVENTORY
END COUNT OF THE INVENTORY. THIS ONLY APPLIES IF
THE PERIODIC INVENTORY SYSTEM IS USED.
101047 - IS THE MOST IMPORTANT PART OF THE PREPARING THE FINANCIAL STATEMENTS.
SUMMARIZING PHASE. THIS IS WHERE THE PROCESSED
INFORMATION IS COMMUNICATED TO USERS.
101048 - BASIC FINANCIAL STATEMENTS (5 ITEMS) 1. STATEMENT OF FINANCIAL POSITION
2. INCOME STATEMENT OR STATEMENT OF
COMPREHENSIVE INCOME
3. STATEMENT OF CHANGES IN EQUITY
4. STATEMENT OF CASH FLOWS
5. NOTES AND DISCLOSURES
101049 - ARE RECORDED AND POSTED FOR THE PURPOSE CLOSING ENTRIES
OF CLOSING ALL NOMINAL OR TEMPORARY ACCOUNTS
TO THE INCOME SUMMARY ACCOUNT AND THE
RESULTING NET INCOME OR LOSS IS AFTERWARDS
CLOSED TO THE CAPITAL OR RETAINED EARNINGS
ACCOUNT.
101050 - ARE MADE AT THE BEGINNING OF THE NEW REVERSING ENTRIES
ACCOUNTING PERIOD TO REVERSE CERTAIN ADJUSTING
ENTRIES FROM THE PRECEDING ACCOUNTING PERIOD.
101051 - ADJUSTING ENTRIES THAT MAY BE REVERSED (4 1. PREPAYMENTS WHEN EXPENSE METHOD IS USED
ITEMS) 2. DEFERRALS WHEN INCOME METHOD IS USED
3. ACCRUED EXPENSE
4. ACCRUED INCOME
101052 - OPTIONAL STEPS IN THE ACCOUNTING CYCLE (2 1. ALL TRIAL BALANCES
ITEMS) 2. REVERSING ENTRIES

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