Accounting 101
What is the basic accounting equation?
Assets = Liabilities + Equity
These are items owned that have monetary value
What are assets?
It is anything of value that a person or business owns and therefore controls
What is property?
What is A/R classified as?
Asset
What is a hybrid?
They take advantage of the benefits of both the corporation and partnership forms of business
This is the purpose of accounting as discussed in class
Help make a profit.
Is accounting considered art, a game, or a specific job?
Art (found in the reading)
The business or person selling the item on credit, can be any person/business you owe money to
Who is a creditor?
What is a journal
What is the key term denoted the book of original entry in accounting?
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
What is the purpose of GAAP?
Set of rules that encompass the details, complexities, and legalities of business and corporate accounting.
or
To ensure everyone follows the same set of accounting rules.
When you buy something and agree to pay for it later
What is Credit?
What is a 501c3?
Tax Exempt status
What is PP&E
Property, Plant, and Equipment
This is the difference between total assets and total liabilities.
What is Owner's Equity?
Name two of the 10 GAAP Principles
Property or items of value owned by a business
What is assets?
What is an LLC
Limited Liability Company
What is GAAP
Generally Accepted Accounting Principles
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
T/F Land is classified as an asset?
True
Is a list of all accounts used by a business.
What is chart of accounts?
Income earned from the sale of goods or services is called?
What is revenue?