Accounting 101
A, L & OE
Accounting Cycle
Vocabulary
Miscellaneous
100

What is a nominal account?

What are Salaries?

100
These are items owned that have monetary value
What are assets?
100
It is anything of value that a person or business owns and therefore controls
What is property?
100
What is Asset, Liability, Owners Capital
What is permanent accounts?
100
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
200

At the end of the year, before any closing entries are made, which account has a debit balance?

What is the Cost of Goods Sold?

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
The business or person selling the item on credit, can be any person/business you owe money to
Who is a creditor?
200
What is revenue, expenses, owner's withdrawals
What is temporary accounts?
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
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is analyze a business transaction?
300
When you buy something and agree to pay for it later
What is Credit?
300

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

Who are creditors?

400

What cash flow category contains activities whereby cash is obtained from or repaid to owners or creditors?

What is Financing?

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400

Decreases both assets and owner’s equity

What is a withdrawal?

400
Property or items of value owned by a business
What is assets?
400
This system is used to analyze and record a transaction
What is a double-entry accounting?
500
This involves testing business records and procedures for accuracy.
What is auditing?
500

A company ended July with assets of $150,000 and owner's equity of $60,000.
What is the amount of liabilities at the end of July? What is the financial statement impact of this error?

What is $90,000?

500

A company sold inventory that cost $1,300 for $2,000. It received $500 cash and the remainder was on account. What is included in the journal entry or entries necessary to record this sale of inventory?

What is a Debit to accounts receivable for $1,500?



500

For most companies, when assets or liabilities are classified as “current” on the balance sheet, it generally means the related assets or liabilities will be turned into cash or will be required to be paid, respectively, within what time frame?

What is next year?

500

Income earned from the sale of goods or services is called?

What is revenue?

M
e
n
u