Accounting in the Real World
Accounting Basics
GAAP Concepts
Accounting Cycle Part 1
Accounting Cycle Part 2
100

What a company or individual owns? 

What is an ASSET

100

Assets = Liabilites + Owner's Equity

What is the accounting equation?


100

Mixing business and personal expenses is known as what concept

What is the business entity principle?

100

What is the key word in step 1 of the accounting cycle?

ANALYZE transactions using debits/credits  and T-Accounts.
100

The final step, 7 in the accounting cycle prepares what?

What is the post-closing Trial Balance

200
A car loan is considered to be what?

What is a liability

200

T-accounts have two sides

What is debit (left) and credit(right)?

200

What does GAAP stand for?

GENERAL ACCEPTED ACCOUNTING PRINICPLES
200

Step 2 journalizes transactions in what?

What is the GENERAL JOURNAL?
200
What step in the accounting cycle journalize and post closing entries?

What is step 6?

300

Assets taken out of a business by the owner for personal use

What is Withdrawals?

300
A record use to track increases and decreases in the accounting equation

What is ACCOUNT?

300
The assumption that a business continues to operate unless evidence state otherwise...
What is the Going Concern principle?
300
This step posts transactions to the general ledger

What is STEP 3 of the accounting cycle?

300

Step 7 is preparing a post-closing general ledger

True or False

False, step 7 prepares the post-closing trial balance

400

Evidence that a business transaction occurred.  


What is a source document? an invoice, a receipt, or purchase order, or check written. 
400
The owner's claim to the assets of the business.

What is OWNER'S EQUITY?

400

Accounting period is a GAAP Concept that determines

when a company creates financial reports : monthly, quarterly, and/or yearly.

400

Step 4 prepares what?

What is a trial balance?

400

Tricia shops at Dillards with her Ideal Memories credit card for a shoes.  What GAAP concept is she violating/

What is Business Entity?

500

Insurance paid for before the coverage period begins

What is prepaid insurance?

500

A financial statement that shows assets, liabilities, and owner's equity on a specific date.

What is the BALANCE SHEET?

500

What GAAP principle or concept focuses on when revenue should be recorded?

What is the revenue recognition?

500

Step 5 creates key financial statements.  What are those statements called?

What is the INCOME STATEMENT and the BALANCE SHEET?


500

If the debits do not equal the credits, what's next or how do we fix it? 

Return to step one analyze transactions _$ amount, or if was posted correctly, and make sure they are correct.

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