Financial Position & Business Transactions
Recording Transactions in T-Accounts
The Income Statement
Journal & Ledger
The Worksheet and Classified Financial Statements
100
the length of time between the preparation of financial reports
What is the accounting period?
100
a list of ledger account balances used to check the accuracy of the ledger
What is a trial balance?
100
a financial statement that shows the assets, liabilities, and owner’s equity at a specific date
What is a balance sheet?
100
a list of the steps completed during the accounting period
What is the accounting cycle?
100
are liabilities that are not due to be paid for more than one year
What are long-term liabilities?
200
are the debts of a business or a person
What are liabilities?
200
a system of financial record keeping where debit entries must equal credit entries for each transaction
What is double entry accounting?
200
A business that recognizes revenue and expenses on a cash basis is using the ________________.
What is the cash basis of accounting?
200
a chronological record of transactions (kept by order of date)
What is a journal?
200
are assets that have a long life (over one year)
What are fixed assets?
300
requires that the financial data for the business be kept separate from the owner’s personal financial data
What is the business entity principle?
300
the accounting term used for the right side of the account
What is credit?
300
a financial statement that presents revenue, expenses, and net income/loss for a specific time period
What is an income statement?
300
transferring entries from the journal to the ledger accounts
What is posting?
300
are liabilities due to be paid within a year
What are current liabilities?
400
refers to the total amount owed to creditors for the purchase of goods and services by the business
What is accounts payable?
400
is a group or file of accounts that can be recorded on paper or via computer
What is a ledger?
400
requires the definition and use of the same period of time for the accounting period
What is the time-period principle?
400
is a reversal of numbers
What is a transposition error?
400
provides details about an item on a main statement
What is a supporting schedule?
500
is an exchange of things of value
What is a business transaction?
500
the accounting term used for the left side of the account
What is debit?
500
are the costs of items or services used up in the routine operation of the business
What are expenses?
500
an entry that has more than one debit or credit
What is a compound entry?
500
describes the changes in owner’s equity for the accounting period
What is the statement of owner's equity?
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