Show:
Income Statement
Owner's Equity Statement
Balance Sheet
GAAP
Terms
100

True of False: There will never be more than one revenue account on an Income Statement.

False

100

What can increase owner's equity?

Net Income

OR

Additional investment by the owner

100

True or False: The Balance Sheet is at a specific date and not over a certain period of time.

True

100

What does GAAP stand for?

Generally Accepted Accounting Principles

100

The area of accounting that focuses on reporting information to internal users.

Managerial Accounting

200

The sections of an Income Statement start with a Heading and the next section is ______________.

Revenue
200

True or False: The Owner's Equity Statement reports information over a period of time.

True

200

The area of accounting which focuses on reporting information to external user.

Financial Accounting

200

Financial Statements contain all necessary information.

Full disclosure

OR

Adequate Disclosure

200

Financial Statements contain all necessary information

Adequate Disclosure

300

True or false: The Income Statement reports information at a specific point in time.

False

300

The Owner's Equity Statement is reconciliation of what account over time?

Capital

300

The one owner's equity account that is included on the Balance Sheet.

Capital

300

Reporting revenue when it is earned and expenses when they are incurred regardless of cash exchanging hands.

Accrual Basis of Accounting

300

Total Expenses Divided by Total Sales

Total Expenses Ratio

400
The amount of the net income calculated on an Income Statement is correct if it is the same as on the __________.

Work sheet

400
The account used when an owner takes money or property out of the business and reduces owner's equity.

Drawings

400

The order of three main types of accounts on a Balance Sheet.

Assets, Liabilities, Owner's Equity (or capital)

400

Financial Statements are prepared with the expectation that a business will remain in operation indefinitely.

Going Concern

400

Reporting an amount on a financial statement as a % of another item on the same statement.

Vertical Analysis

500

An amount is written in _________________ on a financial statement if it is a negative amount.

Parenthesis

500

Beginning Capital + ___________ - Drawings = Ending Capital.

Net Income


500

What does the Balance Sheet prove?

The accounting equation

500

Revenue earned and the expenses incurrend to earn that revenue are reported in the same period.

Matching Principle

500

Net Income Divided by Total Sales

Net Income Ratio

or

Return on Sales