Accounting 101
Accounting is also called the language of
What is: Business?
Home Interiors has assets of $120,000 and liabilities of $45,000. The owner’s equity is _______?
What is $75,000?
The first step in the accounting cycle is to:
What is analyze the transaction?
Journal entries made to update accounts for previously unrecorded items are called
What is adjustments?
The part of the journal entry to be recorded first is the:
What is debit?
The organization that has the final say on financial accounting issues faced by publicly owned corporations is the ______________
What is Securities and Exchange Commission?
The fundamental accounting equation is
What is Assets=Owner's Equity+Liabilities?
The second step in the accounting cycle is to:
What is journalize the transaction?
Prepaid expenses are adjusted at the end of the accounting period in order to:
What is properly reflect the portion of the cost of the asset used by the business?
Accumulated depreciation equipment is a __________ account.
What is contra asset?
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
Amounts that a business must pay in the future are known as __________
What is Accounts Payable?
The journal is referred to as the record of ______ entry.
What is original?
The account used to record the amount a customer owes the business.
What is Accounts receivable?
The journal entry to close the drawing account.
What is debit the Capital account and credit the Drawing account?
The CPA designation stands for:
What is Certified Public Accountant?
Pauline Palmer began a new business by depositing $100,000 in the business bank account. She wrote two checks from the business account: $20,000 for office furniture and $5,000 for office supplies. What is her financial interest in the company?
What is $100,000?
The general journal organizes accounting information in _____________ order
What is chronological?
Property or items of value owned by a business.
What is assets?
The financial statement that indicates how much customers owe to the business?
What is Balance Sheet?
This involves testing business records and procedures for accuracy by an external CPA firm.
What is auditing?
Which account has a normal debit balance?
Accounts Payable
Jeffery Wells, Drawing
Jeffery Wells, Capital
Fees Income
What is Jeffery Wells, Drawing?
The general ledger organizes accounting information by:
What is account?
Is a list of all accounts used by a business.
What is chart of accounts?
The financial statement that shows total revenues, total expenses, and whether the business had a net income or net loss.
What is income statement?