# The Accounting Basics Blog

Welcome to the Accounting Basics Blog!

The Accounting Basics Blog lets you know whenever there is a new accounting question, lesson, article of interest, exercise, tutorial or other update to the Accounting-Basics-for-Students website.

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### Creditors, Purchases, Cost of Goods Sold Question and Answer

Before you begin: It's important for testing and exams to make sure you not only answer questions correctly but also completed them at the right speed.

### Debtors and Creditors Control Accounts Exercise

Before you begin: It's important when preparing for tests and exams to make sure you not only answer questions correctly but also do so at the right speed.

Continue reading "Debtors and Creditors Control Accounts Exercise"

### Name the Accounts Question:Bills and Receipts

Before you begin: For testing and exams it's important to make sure you not only answer questions correctly but also complete them at the right speed.

Continue reading "Name the Accounts Question:
Bills and Receipts "

### Define Capital Structure

Question:What is the meaning of capital structure? Answer:The term capital structure refers to the structure or combination of capital (owner's equity)

### Double Entry Exercise:Which Accounts Are Affected?

Before you begin: For purposes of testing and exams it's important to make sure you not only get the questions right but are completing them at the right

Which Accounts Are Affected?"

### Journal for Partial Payment and Trade-In of Vehicle incl. Depreciation

Question:Paid \$12,500 for a car which cost \$20,000 with the garage accepting \$7,500 in part exchange. The old car cost \$22,000 and had depreciated by \$5,000.

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### Examples of FIFO Products in Real Life

Q: Give at least 5 examples of fifo in general life? A: There are many real-life examples of products that are more suited for a FIFO (First-In-First-Out)

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### Owners Equity Synonym

Q: Owner's equity is also known as _____________? A: There are a few synonyms for owner's equity. As you will see in the comments at the bottom of the

### Supplies Expense Example: Accounting Equation & Journal Entry

Q: How do you account for estimated expenses in the accounting equation? For example: Estimated supplies used for 6 months R700. (R = Rands = South African

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### What is the Best Way to Study Accounting?

Q: What is the best way to study accounting? A: I actually published an article on this subject a while back in one of our old newsletters. Here it is

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### Order of Financial Statements

Q: The financial statements must be prepared in a particular order. Which statements are prepared first, second, and third? What is their chronological

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### Full Accounting Questions and Answers

Full accounting questions and answers for you to practice for free. Great preparation for a test or exam. Journal entries, T-accounts, the trial balance and the financial statements. With full solutions and detailed explanations.

### Asset Classification & Cashier's Check

Q: I bought a business warehouse. How do I classify this asset if I paid the full amount with a cashier's check? A: This is a pretty simple transaction

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### Bank Reconciliation Questions:What is a Bank Reconciliation and the Bank Reconciliation Process?

An explanation of what a bank reconciliation is as well as the typical process involved.

What is a Bank Reconciliation and the Bank Reconciliation Process?"

### Work-In-Progress Inventory &Stage Of Completion Valuation

Q: I want to ask how do you calculate opening work in progress inventory and closing work in progress inventory... and whether this calculation should

Stage Of Completion Valuation
"

### Questions regarding Debtors and Collecting/Settling Accounts

Q: 1. How do I determine the effectiveness of the internal control system with regards to debtors? 2. What are the strategies that I can implement to

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### Credit Balance in Purchases Ledger?

Q: I was solving an exercise of control accounts in which one of the transactions given was this: Credit balance in purchases ledger transferred from

Purchases Ledger?"

### Which Accounts are Affected by these Transactions?

Q: Which accounts are affected in each of the following transactions? April 3 Purchased office supplies on account, \$300. April 4 Received prepayment

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### Cheap College Books - Some Great Resources I Found

Here are a few great resources I found on cheap college books, including renting and selling back your textbooks.

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### Accounting Journals: Gift, Sale, Discount & Carriage Paid By Another

Q: What are the journal entries for the following: 1) Received gift of Rs 51,000 from father-in-law by check, which is deposited into business bank account.

Gift, Sale, Discount & Carriage Paid By Another
"

### Journal Entries Accrual Items Question

Q: I want to know how do you make the following journal entries (rs = Rupees = Indian currency): 1. Outstanding expense - rs 3,000 2. Accrued interest

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### Journal Entry for Credit Card Sales Transaction

Q: Prepare the journal entries for the following credit card sales transactions (the company uses the perpetual inventory system): Sold \$3,000 of merchandise

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### T-accounts: Entry for Complex Capital Investment

Q:Owner invested PHp (Philippine Pesos) 500,000 cash along with computer equipment that had a market value of php. 120,000 two years ago but was now worth

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### Where to Study Accounting - College Search

Deciding on a college where you'll study accounting can be a bit scary. Use our search tools here to find accounting colleges and classes across the US.

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### What is a Folio?

Q: What is a folio? A: It's a cross-referencing code, usually a number or a few numbers and letters. It connects two separate records, such as connecting

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### Accounting Question - LIFO Method

Why would tax accountants prefer to use last-in-first-out method?

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### Income Statement - Six Month Period (Multiple Choice Question)

If the income statement covered a six month period ending on November 30, 2010, the third line of the income statement would read: A. Month ended November

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### Pricing System - FIFO, LIFO and Weighted AVerage

There was an opening balance of 100 units which had a value of #3900. Bought: may 100units @ #41, june 200units @ #50, august 400units @ #51.875, sold:

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### enter the unadjusted trial balance onto a work sheet

Enter the unadjusted trial balance onto a work sheet and close off the temporary accounts (income, expenses, drawings, etc.), leaving only the permanent

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### Side and General Ledger Account (Discount)

Q:Which one of the following alternatives represents the side and general ledger account to which the total of the discount column in the cash payments

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### Ledgers

Q: What type of ledgers are there? A: 3 ledgers: - General Ledger - Debtor's Ledger - Creditor's Ledger