1
Give an example of an economic entity
Business
List 3 users of financial information.
Banks, Owners, employees, manager, regulatory agencies
What is the basic fundamental accounting equation?
A=L+OE
Credits are used to record increases in what accounts
Capital, Revenue, Liability
List the range of chart of accounts in order.
Assets 100
Liabilities 200
Owner's Equity 300
Revenue 400
Expenses 500
What are the two types of entities?
Economic and Social
CPA
Nonprofit group, American Cancer Society
This is a tool used to test the accuracy of debits and credits
Trial balance
When one asset account increase and another asset account decreases, it is called a __________ in your assets
Shift
What are the 3 types of business structures?
The balance sheet shows
financial position of a business at a given time.
When does a net loss occur?
Expenses are greater than Revenue
What is listed at the top of each financial statement
Who, What and When
______________ is sold which represents ownership in a corporation.
Stock
When business and personal financial affairs are kept separate, it is called?
Separate entity assumption
What are the 3 financial statements? In who order are they performed?
IS, OE, BS
Amounts that a business must pay in the future are called
Accounts Payable
Which accounts have a normal debit balance
Assets, drawing and expenses
The GAAP accounting principles are developed by the __________ board.
FASB
The 3 main types of accounting are?
public, managerial, governmental
This act was put into place to stop corruption within business financial affairs, stemming from the business, Enron?
Sarbanes Oxley Act
List 4 examples of assets
Cash, Equipment, A/R, Supplies
Compute the following equation...
Assets-$57,300
Liabilities-?
Owner's Equity-$42,600
$14,700
What is tax planning?
Giving financial advice to lessen your tax liability.