Accounting Cycle
Financial Statements
Finance
Debits and Credits
Presentation
100
What is the Basic Accounting Equation?
Assets = Liabilities + Stockholder's Equity
100
_______ are the measurable amounts owed by the business to creditors.
Liabilities
100
Net Income = ________ - ________
Revenues - Expenses
100
Does a note payable have a NORMAL debit or credit balance?
Credit
100
What Public Accounting firm is Tim interning for?
E&Y
200
A fiscal year always ends on December 31. True or False
False
200
GAAP stands for?
Generally Accepted Accounting Principles
200

The document is used to create financial statements

What is worksheet?

200
Which of these accounts have a normal debit or credit balance? Revenues, Expenses, Owner's Equity
Debit: Expenses Credit: equity, revenues
200
CPA stands for?
Certified Public Accountant
300
Which of these accounting cycle steps comes first? Trial Balance or Financial Statements
Trial Balance
300
There are 4 types of Financial Statements. Name 2 of them.
I/S, Statement of Retained Earnings, B/S, Statement of Cash Flows.
300
What is the extra amount paid/earned on the principal of a loan/investment?
Interest Rate
300

Pizza Tribute pays $35,000 cash to buy equipment for the restaurant. What is the journal entry?

Dr. Equipment = 35,000 Cr. Cash = 35,000

300

A measure of the ability of a business to pay its current debts as they become due and to provide for an unexpected need for cash.

What is liquidity ratio?
400

What account reduces owner's equity?

Withdrawals
400
A balance sheet uses 'point of time' to record the date? True or False?
True
400

The relationship between current assets and current liabilities; calculated by dividing current assets by current liabilities.

What is current ratio?

400
Your company performed cleaning services for your customer worth $2,600 on account. What is the journal entry?
Dr. Accounts Receivable = 2,600 Cr. Service Revenue = 2,600
400

Name the order of the preparation of financial statements:

Income Statement, Statement of Changes in Owner's Equity, Balance Sheet and Statement of Cash Flows

500
There are 10 steps to the Accounting Processing Cycle, name one.
Source documents -> Transaction Analysis -> Record in Journal -> Post to Ledger -> Unadjusted Trial Balance -> Record/Post Adj. Entries -> Adj. Trial Balance -> Financial Statements -> Close Temporary Accounts -> Post - Closing Trial Balance
500

Do these accounts go in the Income Statement and/or the Balance Sheet? Interest Expense, Cash, Salaries Payable

I/S = Interest Expense B/S =Cash, Salaries Payable

500

A measure of the relationship between short-term assets and current liabilities; calculated by dividing the total cash and receivables by the current liabilities.

What is Quick Ratio?

500
Does depreciation increase or decrease the value of an asset?
Decrease
500
Ryan and Derek talked about the 3 ways finance is commonly classified. Name one.
Corporate finance, investments, financial markets/institutions
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