Famous Former Accountants
Business
Fundamentals
Famous who
went Bankrupt
Income Statement
The Other Side
(Accrual Accounting)
100


Bob Newhart

100

This form of business only has one owner.

Sole Proprietorship

100


Donald Trump

100

The bottom line of the Income Statement is called what?

Net Income or Loss

100

Sold $100 of candy to a customer who pinky promised to pay you at the end of the month. You will record an increase of Sales (revenue on the Income Statement) for $100. What's the other side?

$100 to increase Accounts Receivable (Asset on the Balance Sheet)

200


Mick Jagger

200

This form of business protects all owners from being sued personally for something that goes wrong in the business.

Corporation

200


George McGovern

200
True or False: The Income Statement reports revenue and expenses over a period time...like a year or a month.

True

200

Received $10,000 in advance from a customer who was kind of a creepy. You will record an increase of cash (an asset on the Balance Sheet) for $10,000. What's the other side?

$10,000 to increase Unearned Revenue (liability on the Balance Sheet)

300


Janet Jackson

300

This is the most common form of business.

Sole Proprietorship

300


Willie Nelson

300

You spend money on paying the gas & electricity bill. How should this show up in the Income Statement?

As an Expense...Utilities

300

Paid $500 to a guy. In return he promises to say really nice things about you on Facebook next month. You will record an decrease of cash (an asset on the Balance Sheet) for $500. What's the other side?

$500 to reduce Prepaid Expenses (asset on the Balance Sheet)

400


Kenny G

400

Dave Ramsey says this is the only type of ship that won't sail.

Partnership

400


Mike Tyson

400

What's the most important thing you can learn from the Income Statement?

Multiple Answers

400

You were billed $1,500 in legal fees...and are beginning to rethink some of your life choices. You will record an increase Legal Fees (an expense on the Income Statement) for $1,500. What's the other side?

$1,500 increase in Accounts Payable (liability on the Balance Sheet)

500


Chuck Liddell

500

This form of business has the tax benefits of a partnership but the legal protection of a corporation.

Limited Liability Company (LLC)

500


Dave Ramsey

500

In cash accounting, revenue is recorded when money is received. When is revenue recorded in accrual accounting?

When it is earned.

500

Paid $1,500 toward your bill for legal fees. You will record a decrease of cash (an asset on the Balance Sheet) for $1,500. What's the other side?

$1,500 decrease in Accounts Payable (liability on the Balance Sheet)

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