Accounting 1
what is the building you are selling your product in considered?
asset
The Balance Sheet Equation
Assets=Liabilities+Owner's Equity
Net worth of the business
What is Owner's Equity?
Business expenses are recorded in which financial statements
Income statement
Results when a business' expenses are greater than its income.
What is a Loss?
Results when a business' income is greater than its expenses.
What is a Profit?
what is owners equity
the owner's investments to the business
Parts of an Income Statement
What is Revenue/Profit and Expenses?
what happens to the cash account when you sell a product and receive cash from your customer?
the cash account increases
Parts of a Balance Sheet
What are Assets, Liabilities, and Expenses?
the amount of money in an account is called the
account balance
Method of reporting financial activity of a business
What is Accounting?
Money owed by the business
What are Liabilities?
Worker who handles bank deposits and withdrawals, sell traveler’s checks and foreign currency, accept loan payments, prepare certified checks or money orders, and may handle other duties.
Who is a Bank Teller?
A professional whose work mainly involves checking on the accuracy of work performed by bookkeepers and accountants, and checking to be sure a company is following all financial laws and regulations.
Who is an Auditor?
Costs of maintaining and operating a business.
What are Expenses?
The amount of money that a company earns
What is Revenue?
Anything of value owned by the Business
What are Assets?
Accountants who meet specific educational requirements and pass a national examination.
Who is a CPA?
Top-level professional who may have final responsibility for one of many aspects of a business’s financial activity, from accounting and taxation to preparing financial reports and supervising various financial departments of a company.
Who is a Financial Manager?
The specific period of time covered by an accounting statement or report (1 month or year)
What is the Fiscal Period?
If Assets are $5,000 and Liabilities are $3,000, what is Owner's Equity?
$2,000
What is the equation for an Income Statement?
Revenue-Expenses=Net Profit or Net Loss
If Liabilities are $4,000 and Owner's Equity is $1,500, what are Assets?
$5,500
which account is the Accounts Receivable listed as?
An Asset