Basics
What is the cash basis of accounting?
Requires a debit and credit.
What is a journal entry?
The place where capital is recorded.
What is equity?
Often represented by A=L+E.
What is the balance sheet?
A statement intended to enhance the control environment of an organization.
What is a code of conduct?
Includes accounts receivable and accounts payable.
What is accrual accounting?
The chronology of transactions.
What is the general journal?
Something of value that you control or own.
What is an asset?
Made up of all the temporary accounts.
What is the income statement?
The responsibility of everyone within an organization.
What is the system of internal controls?
Objective, Entity, Elements, Characteristics, Presentation, Notes
What is the conceptual framework?
Represented by the letter T.
What is an account?
How you finance the purchase of goods and services.
What is a liability?
Operating, Investing, and Financing.
What is the statement of cash flows?
Authorization, Recordkeeping, Custody
What is segregation of duties?
Sets the accounting rules for private companies.
Who is the FASB?
A collection of accounts.
What is the general ledger?
It offsets a specific asset.
What is a contra-asset?
A reconciliation of sorts.
What is the statement of owner's equity?
The most common type of fraud.
What is misappropriation of assets?
There are seven steps needed to complete this.
What is the accounting cycle?
It is less than the general.
What is a subsidiary ledger?
It is not the same as cash but is a measure of success.
What are retained earnings?
The three primary steps.
Often represented by a triangle.
What is fraud?