A financial statement that reports amount of assets, liabilities, and stockholder's equity.
What is balance sheet?
100
Meaning of latin words debit and credit.
What is right and left?
100
Bank of America charges customers a monthly service fee, should it be reported on the income statement during the period?
What is service fee revenue?
100
Redeemed $500 of gift card at Best Buy. Which type of adjustment is needed?
What is deferral adjustment?
200
Basic accounting equation.
What is Assets = Liabilities + Stockholder's Equity
200
Journalize a transaction where a company bought equipment for $20,000 and paid half in cash and half on credit.
What is
Equipment $20,000
Cash $10,000
A/P $10,000
200
Reports revenues when they are earned and expenses when they are incurred.
What is accrual basis accounting?
200
Owes $1,000 of wages for work done in the last week. Which type of adjustment is needed?
What is accrual adjustment?
300
The 4 accounting reports that are prepared in a financial statement (in order in which it needs to be prepared).
What are…
1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows?
300
Journalize a transaction where a company issues stocks in return of a $50,000 contribution in cash.
What is
Cash $50,000
C. Capital $50,000
300
An internal report that lists all accounts and their balances to check on the equality of total recorded debits and total recorded credits.
What is a trial balance?
300
Give an example of something that would fall under temporary accounts.
What is an expense account?
400
The three activities in the statement of cash flows.
What are operating, investing, and financing activity?
400
Calculate the current ratio where current assets totals to $83,773 and current liabilities totals to $86,280.
What is 0.97?
400
Calculate the net profit margin when net income is $1,978 and total revenue is $14,469.
What is 13.7%?
400
An internal report prepared as the last step in the accounting cycle to check that debits equal to credits and all temporary accounts have been closed.
What is a post-closing trial balance?
500
Rules of accounting created by the Financial Accounting Standards Board for use in the United States.
What is Generally Accepted Accounting Principles?
500
The ration in which current assets are sufficient enough to pay current liabilities, so a higher ratio means a better ability to pay.
What is current ratio?
500
This margin tells you how much is the profit from each dollar of revenue... so a higher ratio means a better performance.
What is net profit margin?
500
The net income for Best Buy is $780 and the estimated income tax rate is 35%. Journalize the adjustment needed.
What is
Income Tax Expense $273
Income Tax Payable $273