Account Categories
This category represents everything a business owns.
What is an asset?
This financial statements shows revenues and expenses.
What is the Income Statement?
Assets = Liabilities + Owners' Equity
This accounting job typically provides the most amount of income to accountants.
What is business consulting?
This is typically a driving factor in the stock price of a public company.
What is net income?
This category represents costs of a company.
What are expenses?
This financial statements shows the basic accounting equation.
What is the Balance Sheet?
This is the formula to arrive at net income.
Revenues - Expenses
This organization establishes GAAP.
What is the Financial Accounting Standards Board (FASB)?
This type of business organization is subject to double taxation.
What is a C Corporation?
This category represents debt of a company.
What are liabilities?
This financial statements shows the changes in common stock and retained earnings.
What is the Statement of Stockholders' Equity?
This is the formula to find ending retained earnings.
What is Beg. Bal. + Net Income - Dividends?
These are two broad categories of types of jobs accountants can find.
What are public accounting and private sector accounting?
What is a liability?
This category represents any income earned by a business.
What are revenues?
This financial statement shows inflows and outflows of cash, separated into three categories.
What is the Statement of Cash Flows?
This is the formula to find the ending cash balance on the Statement of Cash Flows.
Beginning Cash Balance + Change in Cash
This is what GAAP stands for.
What are Generally Accepted Accounting Principles?
This account represents the total amount of income earned - all dividends paid during the life of a business.
What is Retained Earnings?
This category represents owners' claims to company resources.
What is Owners' Equity or Stockholders' Equity?
This is the order in which financial statements must be prepared.
What are the Income Statement, Statement of Stockholders' Equity, Balance Sheet, and Statement of Cash Flows?
This is the formula to find the change in cash.
CF from Operating Activities + CF from Investing Activities + CF from Financing Activities
This person/job title in a business is usually responsible for correctly applying GAAP.
What is the manager or management?
Accounts receivable or cash are considered this type of account.
What is an asset?