Accounting 101
A, L, OE
Balance Sheet
Income Statement
Miscellaneous
100
Three types of businesses operated for profit
What are 1) Service businesses, 2) Merchandising businesses, 3) Manufacturing businesses
100
These are items owned that have monetary value
What are assets?
100
These 3 items are found at the very top of the balance sheet.
What are 1) Name of business, 2) Name of the financial statement and 3) Statement date?
100
These are the components on income statement
What are revenue and expenses?
100
Peachtree and Quick Books are examples of these.
What are accounting computer programs?
200
This is what GAAP stand for
What is Generally Accepted Accounting Principles
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 balance sheet is prepared to in order to show this.
What is the financial position of a person or business?
200
This is Net Income (loss)
What is revenue minus expenses?
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
A bank loan would be listed under this category on the balance seet.
What is the liabilities section?
300
This is considered the nominal balance of revenue
What is credit?
300
These are contra accounts
What are allowance for bad debts and accumulated depreciation?
400
Two Accounting methods
What are Accrual and Cash Accounting?
400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400
These are 3 components on a balance sheet.
What are 1) Assets, 2) Liabilities and 3) Owner's Equity?
400
Revene is recognized when goods or services have been delivered
What is accrual accounting?
400
This role is often confused with that of an accountant.
What is a bookkeeper?
500
Under this concept amounts are initially recorded in the accounting records as their cost or purchase price.
What is the Cost Concept?
500
What is the expanded accounting equation?
What is assets = liabilities + beg. cap+ contr cap+revenue-expenses-cap distr
500
This is another term used on the balance sheet that refers to Owner's Equity.
What is capital?
500
Revenue and expenses are closing entry accounts.
What are temporary accounts?
500
This is the process of recording a transaction in the journal.
What is journalizing?
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