Course Outline
Join PRO

Search Results

2781 results for "suspense account"

What is a suspense account? Author: Harold Averkamp, CPA, MBA Definition of Suspense Account A suspense account is a general ledger account in which amounts are temporarily recorded. The suspense account is used because...

statement? What is the difference between an accrual and a deferral? What entry is made when selling a fixed asset? What is a suspense account? What is the meaning of debit? When do you put parentheses ( ) around a...

Chart of Accounts Author: Harold Averkamp, CPA, MBA 75 Q&A Popular Recent What is the distinction between debtor and creditor? What is the purpose of control accounts? What is the difference between Notes Payable and...

an expense or a liability? What is a customer deposit? How do you divide the cost of real estate into land and building? What is a contingent asset? Where in the chart of accounts is a suspense account located? What is...

? What is a credit memo? Why is depreciation on the income statement different from the depreciation on the balance sheet? What is a suspense account? What is a contra asset account? What is the meaning of debit? What is...

Is the drawing account a capital account? Author: Harold Averkamp, CPA, MBA Definition of Drawing Account A sole proprietorship will have a drawing account in which the owner’s withdrawals or draws of cash or other...

A record in the general ledger that is used to collect and store similar information. For example, a company will have a Cash account in which every transaction involving cash is recorded. A company selling merchandise...

What type of account is the Dividends account? Author: Harold Averkamp, CPA, MBA Definition of Dividends Account When a corporation declares a cash dividend, the amount declared will reduce the amount of the...

Asset, liability, and owner’s equity accounts. Also referred to as permanent or real accounts. To learn more, see Explanation of Balance Sheet.

A temporary account to which the income statement accounts are closed. This account is then closed to the owner’s capital account or a corporation’s retained earnings account. This and other summary accounts...

What is a liability account? Author: Harold Averkamp, CPA, MBA Definition of Liability Account A liability account is a general ledger account in which a company records the following which resulted from business...

A general ledger inventory account that has a credit balance instead of an asset’s usual debit balance. An example is the account Reduction of Inventory to Net Realizable Value.

The stockholders’ equity account which reports the par value of the preferred shares of stock that have been issued. Amounts received that are greater than the par value are recorded in Paid-in Capital in Excess of...

What is an asset account? Author: Harold Averkamp, CPA, MBA Definition of an Asset Account An asset account is a general ledger account used to sort and store the debit and credit amounts from a company’s transactions...

The contra owner’s equity account that reports the amount of withdrawals of business cash or other assets by the owner for personal use during the current accounting year. At the end of the accounting year, the...

A general ledger account containing the correct total amount without containing the details. For example, Accounts Receivable could be a control account in the general ledger. Each day the total of the day’s credit...

An asset account which is expected to have a credit balance (which is contrary to the normal debit balance of an asset account). The contra asset account is related to another asset account. For example, the contra asset...

What is a capital account? Author: Harold Averkamp, CPA, MBA Definition of Capital Account In accounting and bookkeeping, a capital account is a general ledger account that is part of the balance sheet classification:...

Also known as a permanent account. Includes the balance sheet accounts (assets, liabilities, and owner’s or stockholders’ equity accounts) but excludes the owner’s drawing account, which is a temporary...

A bank or investment account with a fluctuating interest rate. Usually the funds can be withdrawn on demand, even though the account is not a checking account.

The contra owner’s equity account used to record the current year’s withdrawals of business assets by the sole proprietor for personal use. This is a temporary account with a debit balance. It will be closed...

What is a contra account? Author: Harold Averkamp, CPA, MBA Definition of Contra Account A contra account is a general ledger account with a balance that is opposite of the normal balance for that account classification....

The stockholders’ equity account that reports the par or stated value of the issued shares of common stock. If the common stock does not have a par or stated value, this account will report the amount received when...

What is a T-account? Author: Harold Averkamp, CPA, MBA Definition of T-Account A T-account is a visual aid used to depict a general ledger account. The account title is written above the horizontal part of the “T”....

An account in the general ledger, such as Cash, Accounts Payable, Sales, Advertising Expense, etc. To learn more, see Explanation of Chart of Accounts.

What is a temporary account? Author: Harold Averkamp, CPA, MBA Definition of Temporary Account A temporary account is a general ledger account that begins each accounting year with a zero balance. Then at the end of the...

An account used in combination with another account. For example, the account Allowance for Doubtful Accounts is used with Accounts Receivable in order to present the net amount of the accounts receivable. The account...

The account in which the owner’s investment is recorded plus the net income earned by the company minus the draws made by the owner. Current year net income and draws will be in temporary accounts until the end of...

What is a checking account? Author: Harold Averkamp, CPA, MBA Definition of Checking Account A checking account is a bank account in which a company deposits money and can subsequently withdraw the money by writing a...

What is an account? Author: Harold Averkamp, CPA, MBA Definition of Account In accounting, an account is a record in the general ledger that is used to sort and store transactions. For example, companies will have a Cash...

The debit or credit balance that would be expected in a specific account in the general ledger. For example, asset accounts and expense accounts normally have debit balances. Revenues, liabilities, and...

An owner’s or stockholders’ equity account with a debit balance instead of the normal credit balance. Examples include the owner’s drawing account, a dividend account, and the treasury stock account.

A visual aid used by accountants to illustrate a journal entry’s effect on the general ledger accounts. Debit amounts are entered on the left side of the “T” and credit amounts are entered on the right...

Must-Watch Video

Learn How to Advance Your Accounting and Bookkeeping Career

  • Perform better at your current job
  • Refresh your skills to re-enter the workforce
  • Pass your accounting class
  • Understand your small business finances
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Certificates of
Achievement

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus