Accounts
What is a revenue account increased by?
Credit
How long the asset will be productive.
A) Salvage Value
B) Useful Life
C) Depreciation
D) Lifetime Value
B) Useful Life
What account do we use for closing entries?
A) Depreciation
B) Income Statement
C) Income Summary
D) Bank Reconciliation
C) Income Summary
An intentional act to deceive for personal or financial gain.
Fraud
Debits must _____ credits
Equal
What accounts are on an income statement?
Revenue and Expense
Assets a company plans to use for more than one year to operate and generate income.
Long-Term Assets
Journal entries made at the end of an accounting period. Their purpose is to reset temporary accounts to zero for the next period.
Closing Entries
Measures how much of the company is financed by debt
A) Debt Buying
B) Profit Margin
C) Current Ratio
D) Debt to Equity Ratio
D) Debt to Equity Ratio
The step-by-step process businesses use to record, classify, and summarize financial transactions over a specific period.
A) Transaction Process
B) Accounting Cycle
C) Process Cycle
D) Accounting Equation
B) Accounting Cycle
What accounts are on a balance sheet?
Asset, Liability, & Owner's Equity
What are assets that are expected to be used within the next year?
Current Assets
Which type of accounts are temporary accounts?
Revenue and Expense
Measures how much profit is made per dollar of sales
A) Profit Margin
B) Sales to Equity Ratio
C) Net Income
D) Current Ratio
A) Profit Margin
Revenue is recorded when it is earned, and expenses are recorded when they are incurred, even if cash hasn’t been exchanged yet.
A) Managerial Accounting
B) Cash Accounting
C) Financial Accounting
D) Accrual Accounting
D) Accrual Accounting
What is the accounting equation?
Assets = Liabilities + Owner's Equity
What is an asset that is not a physical asset? An example would be a patent owned by a company
Intangible Assets
What type of accounts are closed at the end of the accounting period?
Temporary Accounts
The fraud triangle consists of pressures, opportunity, and rationalization. Which one can a company control?
Opportunity
The extra value a company has beyond what its physical and measurable assets are worth.
A) Baked In Value
B) Goodwill
C) Additional Value
D) Intellectual Property
B) Goodwill
What type of account is unearned revenue?
Liability
The process of spreading the cost of a long-term asset over the years it helps a business. (Hint: a business would do this with its vehicles)
Depreciation
Name at least 3 users of financial statements
Many
The process of comparing your accounting records with your bank statement.
Bank Reconciliation
What is an account called when you don’t expect a customer to pay what they owe you?
Uncollectible Account (Bad Debt)