Accounting Principles
What is the difference between an Asset and a Liability?
An Asset is something you own.
A Liability is something you owe.
A fiscal period consisting of 12 consecutive months
fiscal year
changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
adjustments
A financial statement that reports assets, liabilities, and owner's equity on a specific date (answer is 1 of the below)
Trial Balance
Adjustments
Income Statement
Balance Sheet
Balance Sheet
What does GAAP stand for?
Generally Accepted Accounting Principles
the length of time for which a business summarizes its financial information and reports its financial performance
__________ basis of accounting is defined as: reporting income when the cash is received and expenses when the cash is paid.
Cash
A financial statement showing the revenue and expenses for a fiscal period (answer is 1 of the below)
Trial Balance
Adjustments
Income Statement
Balance Sheet
Income Statement
Write the Accounting Equation and the Debit/Credit for each part of the Accounting Equation.
Assets = Liabilities + Equity
D/C = D/C + D/C
inc/dec = dec/inc + dec/inc
a proof of equality of debits and credits in a general ledger
trial balance
__________ basis of accounting is defined as: reporting income when it is earned and expenses when they are incurred.
accrual
difference between revenue and expenses when REVENUE is greater than EXPENSES
Net Income
What is the Account Title for an investment?
Capital
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
work sheet
cash paid for an expense in one fiscal period that is not used until a later period
prepaid expense
difference between revenue and expenses when EXPENSES are greater than REVENUE
Net Loss