You & the World of Accounting - Ch 1
What are the activities that a person does well?
What are skills?
It is anything of value that a person or business owns and therefore controls.
What is property?
Chart of Accounts
What is a list of all accounts used by a business?
Accounts used to collect information that will be transferred to permanent capital accounts at the end of the accounting period.
What are temporary accounts?
GAAP
What is generally accepted accounting principles?
The principles a person lives by.
What are values?
What are three examples of expenses (as listed in text/ppt).
What is Rent, Utilities, and Advertising?
A system for numbering accounts makes it easy to
locate individual accounts in the what?
What is a ledger or general ledger?
Accounts that are set up to record business income are classified as .
What are revenue accounts
Land, Cash, Buildings, Office Equipment, Manufacturing Equipment
What are Assets
Making contact with people to share information and advice.
What is networking?
Assets = Liabilities + Owner's Equity
The increase side of account.
What is the normal balance?
A is an amount of money or an asset the owner takes out of the business.
What is a withdrawal?
A visual representation of a ledger account; a tool used to analyze transactions.
What is a T Account?
A business that operates to earn money for its owners.
What is a for-profit business?
Decreases both assets and owner’s equity
What is a withdrawal?
It is increased on the debit side (left side). It is decreased on the credit side (right side). The normal balance is the increase or debit side.
What are Rules for Asset Accounts?
In a accounting system, correct analysis and recording of business transactions should result in total debits being equal to total credits.
What is double-entry?
Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period.
What are permanent accounts?
Name 4 well-known public accounting firms.
Ernst & Young
Deloitte & Touche
KPMG
PricewaterhouseCoopers
Identify accounts affected. Classify accounts affected. Determine the amount of increase or decrease for each account affected. Make sure the accounting equation stays in balance.
What are the steps for analyzing a business transaction?
A system used to analyze and record a transaction.
What is double-entry accounting?
accounts carry their balances forward to the next accounting period. Their balances may change, but they exist over the life of the business. account balances relate only to one accounting period.
What is Permanent and Temporary?
When you buy something and agree to pay for it later, you are buying on . The business or person selling the item is called a .
What is credit and creditor?