Definitions
1.Define Small Business Administration (SBA)
What is a U.S. government agency that supports small businesses with loans, grants, counseling, and training?
What side is the debit side?
Answer: What is the left side of any account?
What is the basic accounting equation?
Answer: What is Assets = Liabilities + Owner’s Equity?
What are the three parts of a balance sheet?
Answer: What are assets, liabilities, and owner’s equity?
What is a source document?
Answer: What is an original record that proves a financial transaction occurred?
What is revenue?
Answer: What is the total amount of money a business earns from normal operations, usually from sales?
What is a general journal?
Answer: What is the book where all business transactions are first recorded chronologically?
What is the basic income statement equation?
Answer: What is Revenues – Expenses = Net Income (or Net Loss)?
What are examples of business assets?
Answer: What are cash, equipment, accounts receivable, inventory, and buildings?
What is a receipt an example of?
Answer: What is a source document?
3. Define accounts receivable
Answer: What is money owed to a business by customers for delivered goods or services not yet paid for?
What does GAAP stand for?
Answer: What is Generally Accepted Accounting Principles?
What happens if a business spends more than it earns?
Answer: What is a net loss?
What is shown in an income statement?
Answer: What are revenues, expenses, and net income or net loss over a period?
Name three examples of source documents.
Answer: What are checks, bank statements, and sales tickets?
4.What is a net loss?
Answer: What happens when a company’s expenses are greater than its revenues during a period?
What is a normal debit balance?
Answer: What are accounts like assets, expenses, and drawings that increase with a debit entry?
What does the accounting equation ensure?
Answer: What is keeping financial records balanced through double-entry bookkeeping?
What part of the balance sheet shows what the business owes?
Answer: What are liabilities?
Answer: What are checks, bank statements, and sales tickets?
Answer: What are entries in accounting records?
5.What is a ledger?
Answer: What is a book or record that groups all of a business’s financial transactions by account?
What are liabilities?
Answer: What are debts or obligations a business owes to others?
What is the result when revenues exceed expenses?
Answer: What is net income?
What shows a company’s financial performance over time?
Answer: What is an income statement?
What source document shows a deposit into a bank account?
Answer: What is a deposit slip?