Show:
Accounting 101
A, L & OE
The Balance Sheet
Vocabulary
Accounting Standards
100

These are the 5 main activities involved in accounting

What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5) Establishing controls to promote accuracy and honesty among employees?

100
These are items owned that have monetary value
What are assets?
100

Where equipment, supplies and cash are listed on the balance sheet.

What is assets?

100

Customers in debt to a business.

What are accounts receivable/debtor?

100

This principal allows accountants to change the value of an asset based on market conditions.

What is The Revaluation Model?

200

A system of dealing with financial information that provides information for decision-making.

What is the definition of accounting?

200
These are the 2 ways the fundamental accounting equation is stated.
What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities?
200

Where mortgage payable goes on a balance sheet.

What is liabilities?

200

A financial statement that reports a person or company's assets, liabilities and equity at a specific point in time.

What is a balance sheet?

200

Makes sure the accounting for a business is separate from the personal affairs of its owner, or any other person.

What is the Business Entity Concept?

300
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
300

This line on the balance sheet refers to money owed to suppliers by a company.

What is Accounts Payable?

300

The name of a financial document that reports the assets, liabilities and equity of a business under IFRS

What is a statement of financial position?

300
When you buy something and agree to pay for it later
What is Credit?
300

If a business closes, the claims of these individuals are settled first.

Who are creditors?

400

These are 2 professional accounting organizations that write the rules for Canada and internationally.

What are AcSB (Accounting Standards Board) and IASB (International Accounting Standards Board)

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400

This is what determines the order in which assets are listed on the balance sheet.

What is liquidity?

400
Property or items of value owned by a business
What is assets?
400

This principal requires assets to be recorded at their purchase price on the balance sheet.

What is The Cost Principal?

500
This involves testing business records and procedures for accuracy.
What is auditing?
500
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
500

Where equity is listed on a statement of financial position.

The top right of a statement of financial position.

500

The overall monetary situation of a business or person.

What is financial position?

500

This principal states a business is assumed to keep operating into the foreseeable future unless there is evidence showing it won't.

What is The Continuing Concern Concept?