Basics of Accounting
What is the accounting equation?
Assets = Liabilities + Equity
Increase in cash → Debit or Credit?
debit
What do we call the process of recording, summarizing, and reporting financial transactions?
accounting
What is a share of ownership in a company called?
stocks
True or False — Common stock usually gives shareholders voting rights.
true
Money the business owns is called ______.
assets
Equipment owned by the business is an asset or liability?
assets
What is the name for the total amount of money a business earns before expenses are subtracted?
revenue
What do you call the company that sells stock to the public?
corporation
NASDAQ is an example of a stock ______.
exchange or market
What do we call money a company owes?
Liabilities
are Tesla's super chargers stations an asset or liability? and why?
asset
What is the term for the owner putting personal money into the business?
owners investment
What is the price of one share of stock called?
stock price
Money earned from dividends is considered ______.
income
Which financial statement shows a company’s profit or loss over time?
the income statement
Daves Hot Chicken is known for its dry chicken? asset or liability
liability, because getting your reputation is an asset, so when that is negative, it can become a liability
What is the name of the financial statement that shows what a company owns and owes at a specific point in time?
balance sheet
When a company shares part of its profits with stockholders, this payment is called?
dividend
What index tracks the 30 largest publicly traded U.S. companies?
dow jones
What does GAAP stand for?
Generally Accepted Accounting Principles
True or False — Revenue increases equity.
true
A legal claim on a company’s assets or income owed to another party is called?
liabitlty
Name the stock exchanges we went over
1. nasdaq
2. dow jones
3.S&P 500
Buying stocks that are currently undervalued and expected to increase in value is called?
value investing