Buys finished products and resells them for a profit.
What is a merchandising business.
100
Assets = Liabilities + ______________
What is Owner's Equity
100
Which side of the T-account are debits?
What is left side.
100
The general journal is an all-purpose journal in which all of the transactions of a business may be recorded. Is this true or false?
What is true.
100
A system that analyzes and records business transactions using debits and credits.
What is double-entry accounting.
200
The amount of money earned over and above the amount spent to keep the business operating.
What is profit.
200
If Liabilities total $200 and Owner's Equity totals $100, how much are the Assets?
What is $300.
200
Purchased new chairs for the office with cash. Would the Cash in Bank account be debited or credited?
What is credited.
200
An account number can be found on the chart of accounts. Is this true or false?
What is true.
200
State Farm Insurance: What type of business (manufacturing, service, or merchandising)?
What is service business.
300
A type of business recognized by law to have a life of its own.
What is corporation.
300
If Assets are $500, Liabilities are $400, how much is Owner's Equity?
What is $100.
300
Purchased new computers for the office on account. Would Accounts Payable be debited or credited?
What is credited.
300
When you have an error on the general journal, it's okay to erase and rewrite correctly. True or False.
What is false.
300
James operates a bakery. During the past week, he sold 50 loaves of bread at $2.00 per loaf. The raw materials for each loaf cost James $1.00. What was the overall profit on bread sales for the week?
What is $50.
400
Accounting that focuses on reporting information to external users.
What is financial accounting.
400
Which of the following account(s) are NOT assets?
Cash, Office Equipment, Manufacturing Equipment, Buildings, Debt, Land.
What is debt.
400
What side of the T-account is used for the normal balance?
What is the side used to record increases.
400
The Owner's Equity account that accounts for sales of merchandise and services.
What is revenue.
400
An accounting assumption that a business is expected to survive and operate indefinitely.
What is going concern.
500
GAAP stands for...
What is generally accepted accounting principles.
500
If Assets are $850 and Owner's Equity is $575, how much are Liabilities?
What is $275.
500
A customer paid a hotel conference room rental fee on account for an office party. What two accounts will be affected?
What is Accounts Receivable and Capital.
500
What do you call a financial time period of 12 months which begins in the month the business chooses? This helps businesses keep their financial records consistent and comparable.
What is fiscal year.
500
Documents that present summarized information about the financial status of a business.