The Basics
Account Types
"Equations"
Calculating Figures
100
Accounting is the language of...
What is Business
100
This type of account includes resources owned, such as: cash, supplies, and A/R
What is an Asset
100
Revenues minus expenses equals this account
What is Retained Earnings
100
You are given an A/R balance of $3,800, a revenue balance of $12,000, an expense balance of $8,000, and a N/P balance of $4,800...Your net income is...
What is $4,000
200
The primary functions of Accounting are...
What is measure business activities and communicate information to internal/external parties
200
Common Stock and Retained Earnings make up this account
What is Stockholders' Equity
200
Assets are equal to these two accounts
What is Liabilities plus Stockholders' Equity
200
Given an Asset balance of $40,000 and a Liability Balance of $22,000, find the Stockholders' Equity
What is $18,000
300
The rules of financial accounting are referred to as...
What is GAAP (generally accepted accounting principles)
300
This is earned from products/services and carries a credit balance
What is a revenue
300
Stockholders' Equity equals...
What is Common Stock plus Retained Earnings
300
You are given a Salary Expense of $2,200, a Utilities Expense of $600, Dividends of $700, and Retained Earning of $1,000. Your service revenue has a balance of...
What is $4,500
400
This group is responsible for the rules of GAAP, while this other party is responsible for enforcing GAAP
What is FASB (financial accounting standards board) and SEC (security exchange commission)
400
This account is considered a liability because the services have yet to have been provided
What is unearned revenue
400
Revenues minus expenses will leave you with...
What is Net Income
400
You are given a Cash account of $8700, A/R of $1400, A/P of $1600, Supplies of $2100, Unearned Revenue of $1200, Service Revenue of $7400, and an Advertising Expense of $1200. Can this trial balance be correct?
What is no, the trial balance cannot be correct due to debits and credits not balancing.
500
The basic business activities are
What is financing, investing, and operating
500
This principle states that revenues are tied to expenses, while this type of Accounting records revenue as earned
What is the Matching Principle and Accrual Based Accounting
500
Total Owners' Equity + Liabilities must equal total assets on this "statement"
What is the Balance Sheet
500
On the balance sheet your total assets are 206k and your total liabilities are 111k, this amount is your owners' equity...
What is 99k
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