Generally Accepted Accounting Principles (GAAP) and Basic Business Structures
The standards and rules that accountants follow while recording and reporting financial activities.
What is Generally Accepted Accounting Principles?
The accounting equation.
What is Assets = Liabilities + Owner's Equity?
Check, Calculator Tape, Sales Invoice, Memorandum, and receipt are examples of this.
What are source documents?
The main categories listed on the balance sheet.
The three types of check endorsements.
What are blank, restrictive, and special?
An organization with the legal rights of a person which many persons or other corporations may own.
Assets = 1500
Liabilities = ?
Owner's Equity = 750
What is Liabilities = 750?
In double-entry accounting, ach journal entry must have at least two entries ( a debit and a credit) that do this.
What is balance?
The main categories listed on the Income Statement.
This is the account that Revenue and Expenses are closed out to.
What is Income Summary?
Reporting income when earned and expenses when incurred as part of the revenue recognition method.
What is accrual basis of accounting?
The two accounts affected in the following transaction:
Received cash from sales
What are Cash and Captial?
When an account number from a ledger is written next to the journal entry from which it was posted.
What is post-referencing?
The correct heading for the income statement.
What is Company Name, Income Statement, For month ended date?
The account that Income Summary and Drawing are closed out to.
What is the Capital account?
What is service, merchandising, and manufacturing?
Referring to the left side of a T account.
What is a Debit?
The heading written on a worksheet.
What is Company name, Worksheet, and the date?
The number that must be calculated on the income statement before the balance sheet can be completed.
What is Net Income (Loss)?
This phrase has the acronym NSF.
What is non-sufficient funds?
The three types of business ownership.
What are a sole proprietorship, partnership, and corporation?
The decreasing side of a liability account.
What is Debit?
Omitting journal entries, reversing debit and credit in a transaction, and recording a debit or credit in the wrong account.
What are common posting errors?
What is beginning capital + net income - drawing?
Revenue, expenses, and drawing are all this type of account.
What is a temporary account?