Accounting 101
A, L & OE
Accounting terms
Vocabulary
Miscellaneous
100
These are the 5 main activities involved in accounting
What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5) Establishing controls to promote accuracy and honesty among employees?
100
These are items owned that have monetary value
What are assets?
100

It is anything of value that a person or business owns and therefore controls

What is property?

100

What is Asset, Liability, Owners Capital

What are account categories?

what are the main elements of the accounting equation

(one of these is acceptable)

100

When a business buys a computer with cash, its cash ______, but its computer equipment ________

What decreases and increases?

200
This is the purpose of accounting
What is to 1)identify, 2)record and 3)communicate financial information?
200
These are the 2 ways the fundamental accounting equation is stated.
What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities?
200

The business or person selling the item on credit, can be any person/business you owe money to

Who is a creditor?

200

This financial statement shows revenues and expenses

What is the income statement?

200

In addition to an owner, these people also have claims against a company's assets.

Who are creditors?

300
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
300
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
300

the difference between this and supplies is that this last longer than supplies

What is equipment?

300

When you buy something and agree to pay for it later

What is Credit?

300

If a business closes, the claims of these individuals are settled first.

Who are creditors?

400

These are 3 main types of accounting fields.

What are Financial accounting, managerial accounting, and tax accounting

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400

This decreases both assets and owner’s equity

What is a withdrawal?

400

Property or items of value owned by a business

What is assets?

400

These are the elements that make up the expanded accounting equation.

What are revenue, expense and Withdrawals?

500

These are the three categorize of businesses based on what they do to earn money.

What is manufacturing, merchandising and service?

500

The rights or financial claims to the assets are called this.

What is equities?

500

This is when the total of the assets remains the same but the makeup of the assets has changed.

What is a shift in assets?

500

Is a list of all accounts used by a business.

What is chart of accounts?

500

Income earned from the sale of goods or services is called?

What is revenue?

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