Terms I
Terms II
Terms III
Practices I
Practices II
100
A statement showing the financial condition of a business or person.
What is a Balance Sheet?
100
Anything that a person or business owns.
What are Assets?
100
The ability of a business to convert its assets into cash quickly and easily.
What is Liquidity?
100
The Fundamental Accounting Equation
What is Assets = Liabilities + Owner's Equity OR Assets - Liabilities = Owner's Equity
100
When preparing a balance sheet the Owner's Equity is listed on this side.
What is the Right?
200
A business which sells goods to the customer.
What is a Merchandising Business?
200
Any debts owing to other people or businesses.
What are liabilities?
200
A business where the skill of the owner or other staff member is sold to the customer.
What is a Service Business?
200
When writing a T-account for Assets, the balance is written on this side.
What is the Left?
200
When preparing a balance sheet the Heading answers these three questions.
What is Who, What, and When?
300
The difference between assets and liabilities.
What is Owner's Equity? (or Capital or Net Worth)
300
Amounts owing to other people or businesses for he purchase of goods or services.
What are Accounts Payable?
300
A business that is owned by shareholders.
What is a Corporation?
300
When there is an increase in how much you owe the bank, you enter it on this side of the T-Account.
What is the Right?
300
When creating a balance sheet there should be a double underline in these two places.
What are under the final totals?
400
A Business that has only one owner.
What is a Sole Proprietorship?
400
A person or business to whom we owe money.
What is a Creditor?
400
Amounts owing to a business by its customers.
What is Accounts Receivable?
400
The two accounts that would be affected if a business bought $5000 worth of equipment for cash.
What are Equipment (up) and Cash (down)?
400
On a T-Account this means "Left"
What is Debit?
500
A customer who owes the business money.
What is a Debtor?
500
The time period over which a business keeps trak of its operations.
What is a Fiscal Year?
500
A place to record the effects of business transactions.
What is an Account?
500
On a T-Account this means "Right."
What is Credit?
500
The two accounts affected if a business does a job for a customer, but the customer will pay later.
What are Accounts Receivable and Capital?
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