Accounts
Transaction Types
Calculations
Accounting Rules
Misc
100
This name refers to a record within an accounting system which is used to collect and store similar information for a specific asset, liability, equity, revenue, or expense.
What is an Account
100
Affects cash and the capital stock accounts on the balance sheet
What is an equity transaction
100
Your total assets equal $1,000 and your total liabilities equal $400. The balance of Total Equity must be?
What is $600
100
A rule under which Assets = Liabilities + Equity.
What is the Accounting (balance sheet) equation
100
Asset accounts are typically grouped in this way
What is order of liquidity
200
This is the cost of wages for individuals who work on specific products, or in other words, the cost of wages of employees who are directly involved in converting raw materials into finished goods.
What is Direct Labor
200
Lowers Cash and the Accounts Payable accounts on the Balance Sheet
What is the payment of an Accounts Payable
200
You Sell 100 pens to a new customer at $20 per pen on 30 day terms from your finished good inventory. Your inventory cost on the pens sold is $500. Your Gross Profit must be?
What is $1,500
200
The financial statements of a business are prepared according to the accounting professionals set of rules and guiding principles
What are Generally Accepted Accounting Principles (GAAP)
200
The ability of a company to pay its bills and it has nothing to do with profitability!
What is Solvency
300
Expenses that are not directly traceable to a specific product. Examples are advertising, administrative salaries and insurance, among others.
What are E,S,G&A Expenses
300
The increase of assets to be processed for later resale regardless of payment method
What is the purchase of raw materials
300
Your company has $1,000 of raw materials that you wish to convert to finished goods. This can be accomplished by paying employees $5,000 in cash and accruing an additional $1,000 of payroll expenses. After performing the above, what is the total value of your finished good inventory?
What is $7,000
300
This is the cost based on the dollar amount originally exchanged to acquire an asset and also refers to an accounting principle requiring financial statements to be based on original costs.
What is The Historical Cost Rule
300
Costs and Expenses have the affect of reducing
What is Net Income
400
These assets are used in the operations of the company and are not intended for sale. They are expected to provide services to the company for a number of years and therefore, are considered long-term.
What are Fixed Assets
400
Includes payroll taxes and insurance expenses for employees that have occurred but have not yet been paid.
What are payroll liabilities (a type of accrued expense)
400
You start a pen company on January 1, 2017 by selling $50,000 in capital stock to your Great Aunt Lillian in order to raise cash for your business. On the same day, you purchased some pen parts for $1,000 in cash for your inventory and a computer for $2,000 on 30 day terms which you add as a fixed asset. What is your ending cash balance at the end of the day after all three transactions.
What is $49,000
400
An accounting rule that refers to the relative importance of different financial information.
What is the Materiality Rule
400
When a sale is made and regardless of the method of payment, this income statement account increases.
What is Net Sales (or Fee For Service)
500
These form a component of the equity side of a balance sheet and are the result of earnings, cost and expense activities on the Income Statement
What are Retained Earnings
500
Affects Net Sales and Net Income accounts on the Income Statement and Accounts Receivable or Cash as well as Retained Earnings on the Balance Sheet and sometimes Inventory and/or COGS/COS on The Income Statement.
What is a Selling Transaction
500
Our pen company has a beginning total equity of $50,000. At the end of the month, we still have not sold anything but we’ve incurred $5,000 in rent expense. Assuming that no other transactions pertaining to equity occur during the month, our ending Total Equity must be?
What is $45,000
500
Employees are certainly important assets to the company yet we don't count them on the company's balance sheet because the accounting principle known as
What is the Measurement Rule
500
The payment of an accrued expense such as payroll liabilities affects this financial statement
What is the Balance Sheet
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