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Chapter 5 JeopardyChapter 5 Jeopardy
By: Ms. LapointeExam: 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)
JeopardyJeopardy
GAAP Definitions Steps DR/CR
100 100 100 100
200 200 200 200
300 300 300 300
400 400 400 400
500 500 500 500
Category 1 $100Category 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 $100Category 1 $100
Revenue Principle
Category 1 $200Category 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 $200Category 1 $200
Expense Principle
Category 1 $300Category 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 $300Category 1 $300
Matching Principle
Category 1 $400Category 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 $400Category 1 $400
Objectivity Principle
Category 1 $500Category 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 $500Category 1 $500
Cost Principle
Category 2 $100Category 2 $100
Long lived assets (building, land, etc)
Category 2 $100Category 2 $100
Fixed Assets
Category 2 $200Category 2 $200
Expired costs
Category 2 $200Category 2 $200
Expenses – advertising bill, phone bill, costs used up to bring in revenue
Category 2 $300Category 2 $300
Unexpired Costs
Category 2 $300Category 2 $300
Assets – have not been used up so they are considered as assets
Category 2 $400Category 2 $400
A balance sheet divided into groups of assets and liabilities
Category 2 $400Category 2 $400
Classified Balance Sheet
Category 2 $500Category 2 $500
The balance sheet with a vertical arrangement of A = L + OE
Category 2 $500Category 2 $500
Report form balance sheet
Category 3 $100Category 3 $100
Preparing Financial Statements What step of the accounting cycle?
Category 3 $100Category 3 $100
Step 6
Category 3 $200Category 3 $200
Posting
Category 3 $200Category 3 $200
Step 3
Category 3 $300Category 3 $300
Originating Data
Category 3 $300Category 3 $300
Step 1
Category 3 $400Category 3 $400
Preparing Trial Balance
Category 3 $400Category 3 $400
Step 4
Category 3 $500Category 3 $500
Worksheet
Category 3 $500Category 3 $500
Step 5
Category 4 $100Category 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 $100Category 4 $100
Income Statement Credit
Category 4 $200Category 4 $200
Wages Expense
Category 4 $200Category 4 $200
Income Statement Debit
Category 4 $300Category 4 $300
Office Supplies on Hand
Category 4 $300Category 4 $300
Balance Sheet Debit
Category 4 $400Category 4 $400
Marketable Securities/Bonds/Investments
Category 4 $400Category 4 $400
Balance Sheet Debit
Category 4 $500Category 4 $500
Bank Loan
Category 4 $500Category 4 $500
Balance Sheet Credit
Classified Report Form BSClassified 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.
