Random Facts
Who sang the song, "Money Can't Buy Me Love?"
Beatles
When supplies are bought for cash, what is the debit ?
supplies
What financial statement contains revenue and expenses?
Income Statement
What is the asset account that that is debited when owner invests in the business?
What type of an account is "accounts receivable?"
asset
What entrepreneur founded Amazon?
Jeff Bezos
Owner makes an investment in the business. What is the credit?
owner's capital
Which financial statement includes assets, liabilities and owner's equity?
balance sheet
What is the expense account that is debited when wages are paid?
Wages Expense
What type of an account is "accounts payable"?
liability
What is the title of an accountant who has passed a test and is certified to practice in public or corporate accounting?
CPA
Office equipment is purchased on account. What is the credit?
accounts payable
What financial statement includes the beginning and ending capital balance?
statement of owner's equity
What is the asset account that is credited when a customer pays on account?
Accounts Receivable
What term is used to describe when one asset goes up in value and another asset goes down in value?
shift in assets
Is the normal balance of an account the increase or decrease side of the T account?
increase
If services are performed on account, what is the debit?
accounts receivable
When preparing a balance sheet, what must the sum of liabilities and owner's equity equal?
total assets
What is the equity account that is debited when an owner takes money out of the business for personal use?
Owner's Withdrawal
What term describes the situation when revenue is greater than expenses?
Net Income
What accounting firm was center of the scandal that led to the American documentary entitled "Smartest Guys in the Room?"
Enron
Paid a creditor for an earlier purchase that was made on account. What is the debit?
accounts payable
Name the correct order that the three primary financial statements must be completed.
Income Statement, Statement of Owner's Equity and Balance Sheet
What is the asset account that is debited when an insurance policy is purchased?
Prepaid Insurance
A worksheet that proves that debits and credits are equal.
Trial Balance