Income Statement
Debits and Credits
Formulas
Balance Sheet
Miscellaneous
100
the amounts a business charges its customers when it provides goods or services
What is Revenues
100
You pay $2500 cash to purchase equipment
Debit: equipment $2500 Credit: cash $2500
100
revenues - expenses = net income
What is net income formula
100
amounts presently owed by a business
What is liabilities
100
a type of organizational form that has one owner
What is a sole propietorship
200
the cost of operating the business, incurred to generate revenues in the period covered by the income statement
What is expenses
200
Borrowed $50,000 from a bank
Debit: cash $50,000 Credit: note payable $50,000
200
assets = liabilities + stockholders equity
What is basic accounting formula/ balance sheet formula
200
the amount invested an reinvested in a company by its stockholders
What is stockholders equity
200
a system of analyzing, recording, and summarizing the results of a business activities and then reporting the results to decision makers
What is accounting
300
Revenues should be recognized when they are earned
What is the revenue recognition principle
300
Purchased $20,000 in equipment, paying $16,000 in cash and the rest on account
debit: equipment $20,000 credit: cash $16,000, account payable $4,000
300
Net income/ total revenue
What is net profit margin
300
assets and liabilities should be initially recorded at their original cost to the company
What is cost priniciple
300
income statement, statement of retained earnings, balance sheet, statement of cash flows
What are the 4 financial statements
400
a liability representing a company's obligation to provide goods or services to customers in the future
What is unearned revenue
400
You provided service to customers for $15,000
debit: cash $15,000 credit: service revenue $15,000
400
current assets/ current liabilities
What is current ratio
400
an event or activity that has a direct and measurable financial effect on the assets, liabilities, or stockholders equity of a business
What is a transaction
400
GAAP
Generally accepted accounting principles
500
the long life of a company is divided into shorter periods such as months, quarters and years
What is time period assumption
500
You issued three $200 dollar gift certificates
debit: cash $600 credit: unearned revenue $600
500
total liabilities/ total stockholders equity
What is debt to equity ratio
500
a simplified version of a ledger account used for summarizing the effects of journal entries
What is a t-account
500
PCAOB
public company accounting oversight board
M
e
n
u