Assets = Liabilities + Owner's Equity
If Assets are $8,000 and Liabilities are $2,000, what is Owner's Equity?
$6,000
100
What are expenses?
The costs of maintaining a business
100
What is anything of value to the business?
Assets
100
What is accounting?
Method of reporting financial activity of a business
200
What accounting activity reacquires specific educational requirements and pass a national examination?
Certified Public Accountant (CPA)
200
Assets = Liabilities + Owner's Equity
If liabilities equals $3,000 and Owner's Equity equals $4,000, what is Assets?
$7,000
200
What is Revenue?
The profit a company makes
200
What is revenue?
Amount of money a company earns
200
What is profit?
How much money a business makes
300
What is the name of the job that checks the accuracy of an account?
Audit
300
Assets = Liabilities + Owner's Equity
If Owner's Equity equals $9,000 and Liabilities equals $15,000, what is Assets?
$6,000
300
Is analyzing a budget a finical activity?
Yes
300
What is money owed by the business?
Liability
300
What is loss?
When a business expenses are greater than its income
400
What is budget?
A plan to spend and save your money
400
Net Income (or Loss) = Total Revenue – Total Expenses
Revenue:
Journals - $2,000
Popcorn - $500
Car Washing - $3,000
Lemonade - $500
What is the Total Revenue?
The total Revenue is $6,000
400
Who is a top level professional who may have final responsibility for aspects of a business’ financial activity?
Financial Manager
400
The amount a business is worth is called?
Owners Equity
400
What specific period of time covered by an accounting statement or report?
Fiscal period
500
What is the accountant statement?
OE + Liabilities = Assets
500
Net Income (or Loss) = Total Revenue – Total Expenses
Expenses:
Light Bill - $300
Water Bill - $200
Insurance - $500
Payroll - $2500
Revenue:
Journals - $100
Popcorn - $500
Car Washing - $200
Lemonade - $500
What is the net income?
The net income is -$2,200
500
What does a bank teller do? (Examples)
Bank employee who handles deposits, withdrawals, selling travelers check, accepting loan payments, preparing money orders
500
The revenue, expenses and the net income (loss) of a business for the fiscal period makes up what statement?
Income statement
500
What are all the finical statements called?
Balance sheet
Income statement
Change in owners equity