Accounting 1
Who is your favourite accounting teacher?
Ma'am Lab-as
What is the term for the amount owed to a company by its customers for goods or services sold on credit?
accounts receivable
What type of accounting adjustment is made to recognize the portion of prepaid expenses that have been consumed or expired during the accounting period?
prepaid expense adjustments
What type of accounting adjustment is made to allocate the cost of a long-term asset over its useful life?
depreciation adjustments
Who never stopped talking in accounting class?
Accepted opinion mo :)
What is the financial statement that shows a company's revenues, expenses, and net income or loss for a specific period?
income statement
Which financial statement provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and shareholders' equity?
Balance sheet
What is the list of all the accounts and their balances at a specific point in time, used to ensure that debits equal credits and to prepare financial statements?
Trial Balance
What financial statement shows the inflows and outflows of cash and cash equivalents from a company's operating, investing, and financing activities during a specific period?
cash flow statement
What is the system of recording financial transactions that requires each transaction to have an equal debit and credit amount?
double-entry bookkeeping
In double-entry bookkeeping, what is the name of the account that is debited when a company receives cash?
cash account
What is the term for economic resources owned or controlled by a company, which are expected to provide future benefits?
assets
What is the term for the account that records the amount owed by a company to its suppliers for goods or services purchased on credit?
accounts payable
What is the term for the systematic allocation of the cost of an asset over its useful life?
depreciation
What is the accounting method that recognizes revenues when earned and expenses when incurred, regardless of when cash is received or paid
accrual accounting
What type of accounting adjustment is made to recognize revenues that have been earned but not yet received or recorded?
accrued revenue adjustments
What is the centralized record that contains all the individual accounts used by a company, showing the changes to those accounts over time?
general ledger
What is the principle that states that expenses should be recognized in the same period as the revenues they help generate?
matching principle
What type of accounting adjustment is made to recognize expenses that have been incurred but not yet paid or recorded?
accrued expense adjustments
What type of accounting adjustment is made to recognize the portion of revenues that have been received but not yet earned?
deferred revenue adjustments
What is the assumption in accounting that assumes all financial transactions should be recorded and reported in a common monetary unit, such as the currency of the reporting country?
monetary unit assumption
What is the assumption in accounting that presumes a company will continue to operate and fulfill its obligations in the foreseeable future?
going concern assumption
What is the ratio that measures a company's ability to meet its short-term obligations, calculated by dividing current assets by current liabilities?
current ratio
What is the term for the profitability ratio that measures how much profit a company generates for each dollar of sales?
profit margin
What type of financial statements are prepared and reported for a period shorter than a full fiscal year, often used to provide updated financial information to shareholders and stakeholders?
interim financial statements