Chapter 1
What does GAAP stand for?
Generally Accepted Accounting Principles
To INCREASE an Asset, do you debit or credit it?
Under the _______ basis of accounting, revenues and expenses are reported on the income statement in the period in which cash is received or paid.
cash
Which financial Statement should be prepared first?
The income statement
What toy did the dad buy the daughter on her birthday?
A gun
What is the Accounting Equation?
Assets = Liabilities + Owner's Equity
To DECREASE a liability to you debit or credit the account?
DEBIT
Under the ________ basis of accounting, revenues are reported on the income statement in the period in which a service has been performed or a product has been delivered.
accrual
In the income statement, Revenue Minus ________ = Net income?
Expenses
Why does the main character need money?
He owes money
Name the Financial Statement in which Net Income is reported.
Income Statement
To INCREASE a revenue account, do you debit or credit it?
CREDIT
An _______ occurs when revenue has been earned or an expense has been incurred but has not been recorded.
accrual
The property, plant, and equipment, also described as fixed assets or plant assets are reported on which financial statement?
Balance Sheet
What happens when a player gets "eliminated"?
They die.
Which Financial Statement reports the changes in the retained earnings for a period of time?
The retained earnings statement
A list of the accounts in the ledger of a Company is called what?
Chart of Accounts
To lose usefulness as all fixed assets except land do. What is this called in accounting?
Depreciation
What is Step 1 in the accounting cycle?
Step 1. Analyzing and Recording Transactions in the Journal
The main character meets a strange man who asks him to play a game for $100,000 if the main guy wins, and if the main guy loses, what happens to him?
He gets slapped
Which Financial Statement reports the assets, liabilities, and stockholders' equity of a Company?
Balance Sheet
The liability created by receiving money in advance before providing a good or service to the customer is called what?
Unearned revenue
The adjusting process takes place:
a) At the beginning of the period
b) Throughout the period
c) At the end of the period
At the end of the period
What is the name of the entries that transfer the balances of the revenue, expense, and dividends accounts to the retained earnings account?
Closing Entries
Horse Racing