Super Easy
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Hard
100
The drawings account normally has a _____ balance
What is Debit
100
An increase in equity resulting from the sale of goods or services is called
What is Revenue
100
What will happen to the ending capital if drawings are greater than net income?
What is Capital will decrease
100
This GAAP principle states that revenue must be recorded in the accounts at the time the transaction is completed.
What is The Revenue Recognition Convention
200
An expense account normally has a _____ balance
What is Debit
200
A decrease in equity resulting from the costs of producing revenue is called
What is Expense
200
What is the source of data for the Income Statement?
What is Ledgers/Accounts
200
This GAAP principle states that accounting will take place over specific time periods known as fiscal periods
What is The Time Period Concept
300
A Revenue account normally has a _____ balance
What is Credit
300
Withdrawal of funds that represents decrease in equity is called
What is Drawings
300
A list of ledger accounts and their numbers are arranged in ledger order is called
What is Chart of Accounts
300
This GAAP principle states that each expense item related to earned must be recorded in the same period as the revenue it helped to earn
What is The Matching Principle
400
How do you calculate Net Income or Net Loss
What is Revenues - Expenses = Net Income/Loss
400
Name 3 accounts, that were introduced in Chapter 5, in the equity section
What is Revenue, Expense and Drawings
400
Net Income is measured over a specific length of time is called
What is Fiscal Period
400
Name three persons or groups who use the income statement
What is Owners/Managers, Bankers and Income Tax Authorities
500
Which account represents the beginning equity figure?
What is Capital
500
What is another name for fiscal period
What is Accounting Period
500
What is the definition of Income Statement?
What is A statement that summarizes the items of revenue and expense
500
What is the purpose of the Capital account in the expanded ledger?
What is To provide information about the progress of the business
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