Basic Accounting Principals
An information system that identifies, measures, records and communicates relevant information that objectively and correctly represents an organization's economic activities.
What is an accounting system?
Will be converted to cash or used up within 1 year or 1 operating cycle.
What are current assets?
This statement typically contains items at a certain point in time such as assets.
What is a Balance Sheet?
This displays the key company information including a quick overview of your company. It displays information about invoices and sales, expenses and a basic profit and loss graph.
What is the Dashboard?
This type of business structure is run by two or more persons. May have an oral or written agreement, but is not a separate legal entity from the owners.
What is a partnership?
The accounting standard for private corporations.
What is ASPE - Accounting Standards for Private Enterprises?
Obligations of an entity, the settlement of which may result in the transfer or use of assets, provision of services, or other yielding of economic benefits in the future.
What is a liability?
This statement contains an overview of detail for a length of time such as a quarter, year or operating cycle?
What is an Income Statement?
These can be accessed through either the gear cog or through the Sales (in the main menu).
What are Products & Services?
This structure is a separate legal entity, it can enter into contracts and buy, own and sell property.
What is a Corporation?
Revenue is recognized when the risks and rewards have transferred and the earnings process is substantially complete, revenue is measurable and collectible.
What is the Revenue Recognition Principle?
The remaining value of an owner's interest in a company after all liabilities have been deducted.
What is equity?
This statement shows the difference between total assets less total liabilities and is where profit is closed out to.
What is the Statement of Changes in Equity or the Statement of Retained Earnings?
This is one quick way to view the account history for any account.
What is "Account History" found in the Chart of Accounts, accessed by the Gear?
This liquidity ratio considers the current debt-paying ability of an entity.
What is a Current Ratio?
An exchange of economic consideration between two parties that causes a change in assets, liabilities, or equity.
What is a business transaction?
These are increased with debits and decreased with credits.
What are assets and expenses?
This statement describes the sources and uses of cash for a reporting period. It is divided into three sections - operating, investing and financing.
What is the Statement of Cash Flows?
Daily Double!
These types of transactions can be used to record debit card, credit card, interac, online and other transactions. There are two paths one can follow to enter these.
What are Expenses (found under "+ New"or side bar "expenses" - "New Transaction") ?
This solvency ratio shows how much a company's liabilities are financed by debt and is expressed as total liabilities as a % of total assets.
What is the Debt ratio?
Expenses are recognized in the period in which the corresponding revenue is earned.
What is the matching principle?
These are increased with credits and decreased with debits.
What are liabilities, equity and revenue?
This statement discloses items as current and long term.
What is a Balance Sheet?
When needing to count inventory on hand, this helpful report displays the name, description, quantity on hand, among other details details to assist with inventory count processes.
What is the Physical Inventory Worksheet report?
This ratio reflects a company's ability to earn profit from sales. It is sensitive to changes in price or costs. The higher the better.
What is Profit Margin?