Acccounting 101
A, L & OE
Accounting Cycle
Vocabulary
Law
100
You pay the rent. What do you debit? What do you credit.

Debit Rent Expense

Credit Cash

100
These are items owned that have monetary value
What are assets?
100

This type of capital gain is taxed at a preferential rate.

(0%, 15%, or 20%) 

What is long term capital gain?

100

With this type of IRA you pay tax on your contribution, but you pay no taxes when you withdraw the funds as long as you over the age of 59 and 1/2 and the funds have been in the account for at least 5 years.

What is a Roth IRA?

100

This set of standards are used to regulate financial accounting in the U.S.

What is GAAP?

200

You perform $1,000 of services for a client and he has 30 days to pay you. What do you debit or credit?

Debit A/R

Credit Service Revenue

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 partnership does not pay taxes, instead the individual partners pay tax only once on their share of the income.

What do we call this?

What is a "flow through entity"?

200

What increases owner's equity?

What is Investment?

       or 

What is Revenue?

200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300

This type of accounting reports information to outsiders (Banks, Creditors, investors).

Financial Accounting

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 On Account?

300

The set of standards used to regulate financial accounting outside the U.S.

What is IFRS?

400

These are Big Four.

What are PWC, KPMG, Ernst & Young, & Deloitte?

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

Decreases both assets and owner’s equity

Two possible answers?

What is a withdrawal?

What is an expense?

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
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
500

It is a legal right to property

What is a financial claim?

500
Is a list of all accounts used by a business.
What is chart of accounts?
500
Income earned from the sale of goods or services is called?
What is revenue?
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