Finance Quiz

 debits (dr) record all of the money flowing into an account, while

 credits (cr) record all of the money flowing out of an account.

Double entry system - At least two entries are required to keep the
accounting equation in balance
y
 Cogs – inventory consumed ?
 To see total amount to check values in excel, command all of them and look at bottom
right
 If fully paid its cash

- An allowance for doubtful accounts is considered a “contra asset,”

- Temporary accounts (Income statement accounts)
- When you debit Bad debt expense, you can credit allowance for doubtful accounts
- An allowance for doubtful accounts is considered a “contra asset,”
- Sales returns are considered a contra revenue account as sales returns reduce the
revenue of the business. Also read: Cash Book.
- When the seller allows a discount, this is recorded as a reduction of revenues, and is
typically a debit to a contra revenue account.
Operating cash flows– All cash flows other than investing and
financing– Cash flows with the normal operations of the business

Cash flow statements session 18 – c hapter 15