Chapter 1
List 1 For-Profit Organization & 1 Non-For-Profit Organization
For-Profit: McDonald's, Nike, Apple
Non-For-Profit: Riley Hospital, Cancer Runs, ASPCA (American Society for the Prevention of Cruelty to Animals)
The United States has this, where people are free to produce the goods and services they choose.
Free Enterprise System
What is our Accounting Equation?
Assets = Liabilities + Owner's Equity
Which account(s) list the credits on the left and the debits on the right regarding T-Accounts?
Liabilities & Owner's Equities
When you buy something and agree to pay for it later, you are buying _____.
On Credit
The principles that you live by and the beliefs that are important to you.
Values
Buys finished products and resells them to individuals or other businesses
Merchandising Business
Balance the Accounting Equation:
$7,500 = ? + $3,000
$4,500
What are the 3 rules for Asset Accounts regarding Debits and Credits?
1. Increased on Debit Side
2. Decreased on Credit Side
3. Normal Balance on Debit Side
Focuses on reporting information to external users. Reports are prepared for individuals not directly involved in the day-to-day operations of the business.
Financial Accounting
Activities that you do well.
Skills
Reporting information for internal users of accounting information.
Management Accounting
Property or items of value owned by a business are referred to as _____.
List two examples:
Assets...
Cash in Bank
Office Equipment
Manufacturing Equipment
Building
Land
In your chart of accounts, the following are listed alongside which number?
Liabilities =
Revenues =
Owner's Equities =
Assets =
Expenses =
Liabilities = 2
Revenues = 4
Owner's Equities = 3
Assets = 1
Expenses = 5
Handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports.
Accountants
Making contacts with people to share information and advice.
Networking
List the 3 Forms of Business Organizations...
Which one is harder to raise money but has fewer regulations to follow?
Sole Proprietorship, Partnership, and Corporation...
Sole Proprietorship
List the two accounts affected and for how much?
Tiger Company received and deposited a check for $850 from Gaming Corporation. The check received is partial payment for the gaming console previously bought.
Cash in Bank: -$850
Accounts Payable - Gaming Corporation: -$850
Make a T-Account.
Nicholas Khert issued a $5,000 check for a brand new automated speaker system.
Debit: Speaker Equipment +$5,000
Credit: Cash in Bank -$5,000
Accounts are grouped together in a ___, no matter if it is manual or automatic.
Ledger (General Ledger)
What are the 5 steps for setting a career goal?
1.) Decide on a long-term goal
2.) Identify actions that will lead you to that long-term goal
3.) Take action!
4.) Diversify your skills
5.) Realize your long-term goal
What are the Three Accounting Assumptions?
Business Entity, Accounting Period, Going Concern
List the two accounts affected and for how much?
Charlie Brown withdrew $1,320 from his business to pay for his new braces.
Cash in Bank: -$1320
Charlie Brown, Capital: -$1320
Make a T-Account.
Build-A-Bear Co. bought a new truck on account from FedEx Delivery Services for $20,000.
Debit: Delivery Equipment +$20,000
Credit: Accounts Payable - FedEx Delivery Services +$20,000
The cost of products or services used to operate a business is _____.
Income earned from the sale of goods or services is called _____.
Expenses
Revenue