a)That all businesses should be a separate entity and financial data be kept separate
b) record all data with mathematical accuracy
100
what is maturity date?
a) Due date of a liability
b) The day the accounting period starts
c) the date the accounting period ends
100
what is the cost principle?
a) Assets are shown in alphabetical order
b) Assets are shown in the order of their cost of their construction
c)Assets are shown in the order of their date recieved
100
What is credit and debit?
a) Credit- left side of account
Debit- Right side of account
b) Debit- left side of the account
Credit- right side of the account
200
what is a creditor
a business that loaned or credited money to another person/ business
200
What is a Balance sheet?
a)Financial statement that lists the assets, liabilities and owners equity
b)Financial statement that lists the claims of the owners
c)Financial Statement that lists the Debts a business owns
d) all of the above
200
what side does the assets go on a balance sheet?
Left
200
What is double entry accounting?
that the there should be equal debit and credit amount recorded for transactions
300
What is the Personal net worth? or equation?
the difference between items owned and debts owed
300
What is owners equity?
Owners claim against the assets of the company after paying all debts
300
What side does the liability and owners equity go on a balance sheet?
right
300
What is a transaction?
the exchange of things of value
300
If assets increase, the amount is recorded on the_______
debit side
400
What is a liability?
The debts of a business or a person
400
What is accounts Receivable?
Total amount due from borrowers usually within 30 days
400
What is liquidity order?
the order of the assets from the most to least likely to be converted to cash
400
What is an accounting period?
Period of time covered by financial statements
400
if Liabilities or owners equity increase, the amount is recorded on the ________
credit side
500
What is the balance Sheet equation?
Assets= liability + owners equity
500
What is Accounts Payable?
Amount owed to creditors after the purchase of goods or businesses
500
Difference Between Bookkeeping and accounting?
Bookkeeping is recording the information, while accounting is controlling and analyzing the financial information
500
What is a credit union?
a non-profit organization
500
If assets decrease, the amount is recorded on the _______