Random
Name an example of a prepaid expense.
Feed, seed, fertilizer, chemicals.
A _________ is a detailed list of either goods that are shipped/sold or services that are rendered, including all related costs.
Invoice.
What is the most common method of depreciation?
Straight line depreciation.
What is the money owed for a product or a service?
A liability.
What is the process of recording, summarizing, and reporting the financial transactions of a business?
Accounting
Name an example of a capital asset?
land, buildings, machinery, equipment, breeding livestock
What is a budget that plans the costs of producing a product or a service?
Production budget.
What is the decrease in the value of a physical asset over time due to use and wear and tear?
Depreciation.
What is an item that a business owns and uses in the business?
An asset.
Who is involved in the day-to-day operations of a business and is responsible for preparing and/or recording transactions and events in an accounting system?
A book keeper/record keeper.
What is the basic accounting equation?
assets = liabilities + owner’s equity
What is a budgeting approach used to create a new budget by starting at $0 and justifying each individual expense for the current period?
Zero-based budgeting.
What is a depreciable asset?
An asset that has a life span of more than one year and decreases in value over time.
What is a detailed list of the goods that a business holds for revenue?
Inventory.
What is a written record used to report a summary of business operations and the financial position for a business?
A financial statement.
The availability of a liquid asset, such as cash, to a market or a business.
Liquidity.
What is a budgeting approach used to develop a new budget by using the budget from the previous period as the starting point?
Incremental budgeting.
What is an appreciating asset?
An asset that will increase in value over time.
What is an operating loan?
Money borrowed to cover immediate expenses for a business to function on a day-to-day basis.
What are the three main items listed on a balance sheet?
Assets, liabilities, and owner’s equity.
The period of time that covers certain accounting functions.
Accounting period.
What is is a budget that plans the costs of promoting a product or a service?
Marketing budget.
What is useful life?
The estimated life span of a depreciable asset.
What is a calculation that shows the total value of a business or an owner?
Net worth.
What is the equation to find owners equity?
Hint: assets and liabilities are in the equation
assets - liabilities = owners equity