Chapter 1-2
Chapter 3-4
Chapter 5-6
Chapter 6-7
Chapter 8
100
What is the accounting equation?
A=L + OE
100
What are some examples of source documents?
Hydro bill, telephone bill, etc....
100
What is revenue?
An increase in equity resulting from the sale of good or services
100
What is a purchase invoice?
A business form representing a purchase of goods or services on account.
100
What is a work sheet?
A informal business paper used to prepare a financial statement.
200
What is another term that is equivalent to equity?
Net Worth
200
What is a business transaction?
A financial event that caused a change in financial position
200
What is the four equity accounts in the expanded ledger?
Capital, drawings, revenue, expenses
200
What is a transaction log?
A document generated by a point of sale terminal that contains detailed information about each transaction.
200
What are the six steps to the accounting cycle?
Transactions occur,accounting entries are recorded in journal, journal entries posted in ledger accounts, ledger balanced by means of a trial balance, work sheet prepared, income statement and balance sheet prepared.
300
What is the reason that the owner of the business has to accept the losses that occur from selling off any assets?
Creditor's Claims First
300
What is the objectivity principle?
Accounting entries will be based on fact and not on personal opinion or feelings
300
What is the revenue recognition convention?
Revenue must be recognized at the time the transaction is completed.
300
What is the cost principle?
The accounting for purchases must be at the cost price to the purchaser
300
What is a classified balanced sheet?
An organized balanced sheet
400
What are the four main types of businesses?
Service Business, Merchandising Business, Manufacturing or Producing Business, Non-Profit Organization.
400
What is an exceptional balance?
An account normally of the debit balance ends up with a credit balance or vice versa.
400
What is the chart of accounts?
A list of the ledger accounts and their numbers arranged in ledger order
400
What is cross-referencing?
The recording of the journal page number in the account and the recording of the account number in the journal.
400
What is the working capital?
Difference between current assets and current liabilities
500
What are some things accountants do?
Interpret the data produced by the accounting system.
500
What is the Latin word for debit/to owe?
Debere
500
What is the matching principle?
Each expense item related to revenue earned must be recorded in the same period as the revenue it helped to earn
500
What is a transposition error?
A mistake caused by changing the order of digits when transferring figures from one place to another.
500
What is accountability?
The company officers’ obligation to show how well they have been managing the company
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