New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

ACCT-2010 Exam 2 Study Guide Chapters 3 and 4

by: Erica Reynolds

ACCT-2010 Exam 2 Study Guide Chapters 3 and 4 ACCT 2010

Marketplace > East Tennessee State University > Accounting > ACCT 2010 > ACCT 2010 Exam 2 Study Guide Chapters 3 and 4
Erica Reynolds

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

This study guide covers chapters 3 and 4 that will be on exam 2 including adjustments, classified balance sheets, and closing entries.
Principles of Accounting 1
Ashley Bentley
Study Guide
Intro to Accounting, adjusting entries, AccountingCycle
50 ?




Popular in Principles of Accounting 1

Popular in Accounting

This 3 page Study Guide was uploaded by Erica Reynolds on Wednesday September 28, 2016. The Study Guide belongs to ACCT 2010 at East Tennessee State University taught by Ashley Bentley in Fall 2016. Since its upload, it has received 20 views. For similar materials see Principles of Accounting 1 in Accounting at East Tennessee State University.


Reviews for ACCT-2010 Exam 2 Study Guide Chapters 3 and 4


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/28/16
ACCT­2010­003 Exam 2 Study Guide Chapters 3 and 4 Adjustments Cash Basis: revenue recognized when cash is received; expenses recognized when paid  Used for personal accounts (NOT GAAP) Accrual Basis: revenue recognized when earned; expenses recognized when incurred  Used by businesses (GAAP) *ignores cash aspect  Time period concept: can prepare financial statements for specific time periods  Revenue Recognition Principle: recognized only when earned (services provided)  Matching Principle: expenses recognized when incurred (shows profitability) Categories of Adjusting Entries 1. Prepaids a. Prepaid Expenses: Cash paid first—expense recognized later when asset is used b. Unearned Revenue: cash received first—revenue recognized later when  earned 2. Accruals or Deferrals  a. Accrued Expenses; expense incurred now (recognize now)—pay cash later (payable) b. Accrued Revenue: revenue is earned now (recognize)—receive cash later  (receivable) Depreciation *Prepaid Expense: spread the cost of assets out over time used Straight Line Depreciation Cost – Salvage Value / Estimated Useful Life Contra Asset  Asset section of balance sheet  Opposite normal balance: credit (decreases asset)  Example: Accumulated Depreciation Interest = Principal x Annual Rate x Time (years)          *Accrued Expense Classified Balance Sheet  Current: used or due within next 12 months o Assets: Cash, Accounts Receivable, Prepaid Assets, etc. o Liabilities: Accounts Payable, Unearned Revenue, Salaries Payable, etc. o Shown in order of liquidity: how quickly it can be turned into cash  Noncurrent: used or due in more than 1 year o Assets: PPE (buildings, land, Equipment, etc.) o Liabilities: Note Payable (due in more than 1 year) Closing Accounts: zeroing out accounts to prepare for next period Temporary Accounts (Closed) 1. Revenue 2. Expenses 3. Dividends Closing Trial Balance: reflects changes in retained earnings and expenses, dividends, and  revenue are zeroed out Current Ratio= Current Assets / Current Liabilites       *Shows company’s ability to pay its debts (above 1 is good)


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.