Accounting 101
These are the 5 main activities involved in accounting
What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5)
What is permanent accounts?
Asset, Liability, Owners Capital
What is property?
It is anything of value that a person or business owns and therefore controls
What are closing entries?
Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent shareholders' equity account, retained earnings.
What color hair does Ariel have in The Little Mermaid?
Red.. DUH??
This is the purpose of accounting
1)identify, 2)record and 3)communicate financial information
What is temporary accounts?
revenue, expenses, owner's withdrawals
Who is a creditor?
The business or person selling the item on credit, can be any person/business you owe money to
What is Income Summary?
A temporary account used in closing revenue and expense accounts.
What does Rapunzel use as a weapon against Flynn in Tangled?
A frying pan
These represent the types of business organizations that use accounting
1)sole proprietorships, 2)partnerships and 3)corporations
What is Credit?
When you buy something and agree to pay for it later
What is analyze a business transaction?
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is a reversing entry?
An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.
The Sultan wanted Princess Jasmine to marry at what age?
16
These are 3 professional accounting organizations.
Chartered Accountants (CAs), Chartered General Accountants (CGAs) and Certified Management Accountants (CMAs)
What is assets?
Property or items of value owned by a business
What is a withdrawal?
Decreases both assets and owner’s equity
What is a temporary accounts?
Accounts that relate only to a given accounting period. Consist of all income statement accounts, the dividends account, and the Income Summary account. Closed at the end of the accounting period.
What type of animal friend does Moana have?
Chiken
This involves testing business records and procedures for accuracy.
auditing
What is chart of accounts?
a list of all accounts used by a business.
What is a financial claim?
It is a legal right to property
The (4) steps in the closing process.
(1)Debit each revenue account for its balance, and credit Income Summary for total revenues. (2)Debit Income Summary for total expenses, and credit each expense account for its balance. (3)Debit Income Summary and credit Retained Earnings for the amount of net income. (4) Debit Retained Earnings for the balance in the Dividends account, and credit Dividends for the same amount.
What does Hakuna Matata mean?
"No Worries"