Exit Tickets #1-3
________ is the process of recording, maintaining, and reporting an organization's financial transactions and records.
Accounting
Liability; Asset
What account classifications are found on the Income Statement?
Revenue and Expenses
After accounts are recorded in a journal, they are then _______ to the general ledger.
Posted
In a trial balance, the total debit balance must _____ the total credit balance.
Equal
Accounting is the ________ of business.
Language
What is the normal balance of an asset?
Debit
Your manager asks you to look up last month's total service revenue. Which primary financial statement can you find the information?
Income statement
In what order are expenses numbered on a chart of accounts?
Alphabetically
The profit that remains after all expenses have been subtracted from revenue during a certain time period is called...
Net Income
What is the accounting equation?
Assets = Liabilities + Owners' Equity
Revenue is its own account that increases the value of... (assets, liabilities, or owner's equity)
Owner's Equity
Balance sheet
Which inventory costing method assumes the newest items purchased are the first items sold?
LIFO (Last In, First Out)
What order are accounts listed when preparing a trial balance? (5)
Assets, Liabilities, Owner's Equity, Revenue, Expenses
Which basis of accounting adheres to GAAP? (Cash or Accrual)
Accrual
What is the normal balance of a liability?
Credit
Companies record transactions in a...
Journal
In what order are assets numbered on a chart of accounts?
Liquidity
What are the two types of adjusting entries known as?
Accruals and Deferrals
A __________ is a financial statement that marks a company's financial situation at a moment in time, showing all assets, liabilities, and owner's equity.
Balance sheet
If you use cash to pay down an accounts payable balance, which account is debited and which account is credited?
Accounts payable debit; Cash credit
An Income Statement is also commonly known as a...
Profit & Loss Statement
When prices are increasing over time (inflation), which inventory costing method will result in the lowest cost of goods sold?
FIFO (First In, First Out)
Net Income is included in the _______ section of the balance sheet (asset, liability, equity, or expenses)
Equity