Accounting 1
An accounting term is used to record the increases and decreases in each financial statement item.
What is an account account?
Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.
What are expenses?
Elements of the accounting equation
What are assets, liabilities, and stockholders' equity?
The liability created by a purchase on account.
What is accounts payable?
The resources owned by a business
What are assets?
An asset is a claim against the customer created by selling merchandise or services on credit.
What is Accounts Receivable?
The rights of creditors are the debts of the business.
What are liabilities?
Financial reports that summarize the effects of events on a business.
What are financial statements?
In a corporation, the rights of shareholders
What is stockholders' equity?
Revenue from providing services
What is Fees Earned?
The equation shows the relationship among assets, liabilities, and owner’s equity
What is the accounting equation? (Assets = Liabilities + Stockholders' Equity)?
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A former CEO, who stole millions of dollars, evaded prison by flying to Lebanon in a large trunk used for musical instruments. This organization forbids this behavior because it is illegal and unethical.
Who is FASB?
A concept of accounting that states that an asset should be recorded and maintained in the accounting records at its initial transaction price.
What is the historical cost principle?
Matrix Ressurection made 40.5 million dollars at the box office and lost 118.70 million dollars
What is a Net Loss?
An accounting assumption that requires that financial reports be expressed in a single monetary unit, or currency
What is the monetary unit assumption?
A summary of the revenue and expenses for a specific period of time, such as a month or a year.
What is Net Income?
An accounting assumption that allows a business to report its economic activities regularly for a specific period of time.
What is the time period assumption?
Read the book, do the assignments, and practice, practice, practice
What is how to study for an exam?
The annual accounting period adopted by a business
What is the fiscal year?
Revenue - Expenses- Dividends
What is Retained Earning?
A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business.
What is the business entity assumption?
The optional amount that comes out of retained earnings to pay the shareholders.
What is a dividend?
What is the new name of Twitter?
What is "X"?
Statement which calculates Fees Earned - Expenses
What is the Income Statement?
Increases in stockholders' equity as a result of providing services or selling goods to customers.
What is revenue?