A clothing retail store is an example of this type of business.
What is a merchandising business?
100
This term is used to describe the company officers' obligation to show how well they have been managing the company.
What is accountability?
100
In most cases, _______________ assigns amounts of revenue or expense to the proper accounting period before finalizing the books for the fiscal period.
What is an adjusting entry?
100
This is the reason/purpose for closing the accounts each fiscal period.
What is to prepare the accounts for the next period?
100
This term is used to refer to the decrease in value of an asset over time.
What is depreciation?
200
This is the grand accounting equation that every accountant must know!
What is A-L=OE?
200
This is one of the 5 groups who use financial statements besides Owners, Creditors, Shareholders and Investors/Brokers.
Who are managers?
200
This is where these changes are recorded.
What is the adjustment column in the extended worksheet?
200
Bank, Trucks and Accounts Payable are all examples of these types of permanent accounts.
What are real accounts?
200
Assets that are bought not to resell, but to use to produce revenue over several fiscal periods are called these.
What are fixed assets?
300
Bank and accounts receivable are both examples of this.
What is an asset?
300
This GAAP requires that a business must use the same methods and procedures from period to period.
What is the Consistency Principle?
300
This principle states that each expense item related to revenue earned must be recorded in the same time period as the revenue it helped to earn.
What is the Matching Principle?
300
Expenses (such as supplies used) are examples of these types of temporary accounts.
What are nominal accounts?
300
This method of depreciation is a very simple calculation with the same rate of depreciation each year.
What is the straight-line method of depreciation?
400
When a transaction takes place, this is the first place it is recorded.
What is the journal? (will also accept the transaction analysis sheet)
400
This GAAP provides that all information needed for a full understanding of the company's financial affairs be included in the financial statements.
What is The Full Disclosure Principle?
400
When we first looked at adjustments, supplies used, late purchases and this, were all examples of the most common accounts that would need adjustments.
What is insurance used?
400
After all of the adjustments have been made, this process is taken off to ensure the adjustments have been made correctly.
What is a post closing trial balance?
400
This method of depreciation takes a certain percentage off the value of the asset each year.
What is the declining-balance method of depreciation?
500
This sheet is where all the information is held to help prepare a trial balance, an income statement and a balance sheet.
What is the worksheet?
500
This GAAP provides that accountants must follow generally accepted accounting principles except when to do so would be expensive or difficult, and where it makes no real difference if the rules are ignored.
What is the Materiality Principle
500
Insurance is an example of this type of expense.
What is a prepaid expense?
500
The post-closing trial balance is the final step in this.
What is the accounting cycle?
500
The account where all the accumulated depreciation goes to is called this.