Six Big Words
Normal Balance
Financial Statements
Adjusting Entries
Miscellaneous
100

These are the six big words of accounting

What are Assets, Liabilities, Equity, Revenues, Expenses, Dividends

100

This is the normal balance of Cash.

What is debit?

100

This is usually the financial statement that gets prepared first

What is the income statement

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 what its called when someone owes you money that you have not yet received.

What is Accounts Receivable

200

One of these has a normal balance of credit: Accounts Receivable, Common Stock, and Wages Payable.

What is Wages Payable

200

These accounts would appear on this financial statement

Accounts Payable

Unearned Rent Revenue

Common Stock

What is the balance sheet

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

Accounts Payable goes with this BIG Word of Accounting

What is liabilities

300

Owners Equity increases on this side of the T account

What is right (credit)

300

This is usually the shortest financial statement

What is the Statement of Retained Earnings

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

Which of the six big words of accounting form the accounting equation?

What are assets, liabilities, and equity?

400

One of these has a debit normal balance


Rent Expense

Wages Payable

Interest Payable

Retained Earnings

What is Rent Expense

400

A classified balance Sheet gives more of THIS to each account

What is description (classification)

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 is when you haven't done the work yet but you received money.

What is unearned revenue

500

The definition for normal balance is

What is the side that increases of a T account are recorded on

500

Revenues Minus Expenses Equals This

What is Net Income

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?
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