Accounting Basics
_____________ is the language of business.
What is accounting?
This is another term for the income statement.
What is profit and loss statement?
Notes payable would fall under this category of liabilities.
What are current liabilities?
This is when an owner provides capital for business operations.
What are contributions?
This tax form is typically used by a Sole Proprietor.
What is IRS form 1040?
These are the procedures and guidelines that must be followed during the accounting process as adopted by the United States.
What is GAAP (generally accepted accounting principles)
The value received by a firm in return for a good or service.
What are revenues?
Accounts Receivable falls under this category on the Balance Sheet.
What are assets?
This is the final total of the statement of owner's equity calculation.
What is ending capital balance?
This was when the oldest recorded tax payment was made.
What is 2500BC?
This is the 5th step of the accounting process.
Raw materials falls under this total on the income statement.
What is cost of goods sold (COGS)
Land owned would fall under this category of assets.
What are fixed assets?
This is the second category of the statement of owner's equity calculation.
What is income? (income earned during the period)
Partnerships typically use this form to file taxes.
What is IRS form 1065?
In the accounting equation, this equals assets.
What is liabilities + Owner's Equity?
This is also known as your "bottom line" on the income statement.
What is Operating Income?
These are the components of a Balance Sheet.
What are assets, liabilities, and equity?
This happens when an owner removes equity from the company and is deducted from the ending balance.
What is an owner's draw?
This is the collective total Americans paid in taxes in 2019.
What is $5.2 trillion?
This can be found on both the statement of owner's equity and the balance sheet.
What is ending capital?
Business earnings through aspects other than the sale.
What are gains?
This is a firm's current assets minus current liabilities.
What is working capital?
This type of transaction is found on the first line of the Statement of Owner's Equity but not found on other financial statements.
What is beginning capital?
Tax form 1120-S Schedule K-1 is used to report this type of income.
What are shareholder's share of income, deductions, and credits?