Accounting 101
A, L & OE
Balance Sheet
GAAP
Miscellaneous

100

These are the 5 main activities involved in accounting
What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5) Establishing controls to promote accuracy and honesty among employees?

100

These are items owned that have monetary value
What are assets?

100

These 3 items are found at the very top of the balance sheet.
What are 1) Name of business, 2) Name of the financial statement and 3) Statement date?

100

This is what GAAP stands for
What are generally accepted accounting principles?

100

ACCPAC and Quick Books are examples of these.
What are accounting computer programs?

200

This is the purpose of accounting
What is to 1)identify, 2)record and 3)communicate financial information?

200

These are the 2 ways the fundamental accounting equation is stated.
What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities?

200

A balance sheet is prepared to in order to show this.
What is the financial position of a person or business?

200

This professional organization is responsible for the creation of GAAP
What is the Canadian Institute of Chartered Accountants (CICA)?

200

In addition to an owner, these people also have claims against a company's assets.
Who are creditors?

300

These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?

300

This line on the balance sheet refers to money owed by a company
What is Accounts Payable?

300

A bank loan would be listed under this category on the balance seet.
What is the liabilities section?

300

This GAAP principle states that accounting for a business needs to be kept separate from the personal affairs of the owner.
What is the Business Entity Concept?

300

If a business closes, the claims of these individuals are settled first.
Who are creditors?

400

These are 3 professional accounting organizations.
What are Chartered Accountants (CAs), Chartered General Accountants (CGAs) and Certified Management Accountants (CMAs)?

400

This is the difference between total assets and total liabilities.
What is Owner's Equity?

400

These are 3 examples of organizations that may be interested in a company's financial position.
What are 1) Labour Unions, 2) Banks and 3) Government?

400

The GAAP Principle states taht accounting for a business should be fair and reasonable.
What is the Principle of Conservatism?

400

This role is often confused with that of an accountant.
What is a bookkeeper?

500

This involves testing business records and procedures for accuracy.
What is auditing?

500

The term used to explain how quickly a company can convert assets into cash.
What is liquidity?

500

This is another term used on the balance sheet that refers to Owner's Equity.
What is capital?

500

This GAAP Principle states that a business will continue to operate until it no longer does.
What is the Continuing Concern Concept?

500

This represents the usual length of a fiscal period.
What is one year?