Accounting 101
The going concern assumption states that financial statements are prepared with the expectation that a business will remain in operation
What is Indefinitely
These are items owned that have monetary value
What are assets?
The normal balance of an asset is...
What is a debit
What is Asset, Liability, Owners Capital
What is accounts in the accounting equation?
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
Accounting information is divided into three main categories:
What is to 1)identify, 2)record and 3)communicate financial information?
Assuming the business to be a separate entity from its owners as well as other businesses is known as the ___________ assumption.
What is the entity's principal
The normal balance of Notes payable...
Who is a Liability
. A business paper from which information is obtained is a(n)
What is a purchase order (PO)
When paying your cell phone bill, you should credit cash and __________ cell phone expense
What is debit?
What professional organization seeks the highest possible level of uniform certification standards for accountants and promotes and protects the CPA designation?
What is the American Institute of Certified Public Accountants (AICPA)
The left side of the T account represents
What is debit
Prepaid Insurance is a(n)
What is a asset.
A business form granting permission to place an order is a
What is a receipt?
An owner invested cash of $1,000,000 in Company B. The transaction will debit the cash account for $1,000,000 and credit the __________ account.
What is Owner's Capital account?
What is the organizations established to create accounting standards for US GAAP:
What is Financial Accounting Standards Board
When a customer charges on account with your business, the transaction is set-up as a(n)
What is Account's Receiveable
. A debit to the revenue account will ________________ the account.
What is an increase
Property or items of value owned by a business
What is assets?
Once an entity decides on one method of reporting, it must use that same method for all subsequent events. In addition, companies should follow the accounting procedures that align with their industry practices. This concept is the __________ principle.
What is the consistency principle?
What is the Accounting equation?
What is Asset= Liabilities + Owner's Equity
The account that is impacted when an owner takes cash or merchandise from the business for personal use:
What is Drawing account
. A debit to the accounts payable account will ________________ the account.
What is a decrease?
a list of goods sent or services provided, with a statement of the sum due for thes
What is an Invoice?
Income earned from the sale of goods or services is called?
What is revenue?