Accounting 101
A, L & OE
Balance Sheet
Income Statement
CPA Exam
100
What do the letters CPA represent?
Certified Public Accountant
100
What is the most liquid asset?
Cash
100
What are 3 items are found in the heading of the balance sheet.
1) Name of business 2) Name of the financial statement and 3) Statement date
100
Revenues minus ??? = Net Income
Expenses
100
What is the passing score?
75
200
What does GAAP standard for?
Generally Accepted Accounting Principles
200
What is the fundamental accounting equation?
Assets-Liabilities=Owner's Equity Assets=Owner's Equity+Liabilities?
200
Allowance for Doubtful Accounts reduces what account balance?
Accounts Receivable
200
What is the normal balance of a revenue account?
Credit
200
How many credits do you need to obtain your CPA license in PA?
150
300
What is the journal entry to record the purchase of equipment for cash?
Debit - Equipment Credit - Cash
300
What is the normal balance of an asset?
Debit
300
What section of the balance sheet is a bank loan listed?
The liabilities section
300
What is the normal balance of an expense account?
Debit
300
How many parts or sections are on the CPA Exam?
Four
400
Name two financial statements
Balance Sheet (Statement of Financial Position) Income Statement Statement of Cash Flows Statement of Retained Earnings Statement of Equity
400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400
What is the name of the account used when a company pays for insurance in advance?
Prepaid Insurance
400
How should the income statement be dated? As of December 31 or For the Year Ended December 31?
For the Year Ended December 31
400
How many months do you have to pass all four parts of the CPA Exam?
18
500
What is the difference between a short-term liability and a long-term liability?
Short-term liability will be paid off within the year. Long-term liability will be paid off in longer than one year.
500
What is the normal balance of Retained Earnings?
Credit
500
A sole proprietorship has how many owners?
One
500
Are dividends recorded on the Income Statement?
No
500
Name at least one section of the CPA Exam?
Financial Accounting and Reporting Auditing and Attestation Regulation Business Environment and Concepts
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