Vocab 1
These are the rules that govern accounting in the United States.
(Must say full answer)
What is GAAP?
This are the main types of Accounting fields.
Bonus: Clerify the differene between the two.
These type of accounts are found on the Balance Sheet.
What are Assets, Liabilities, & Equity?
This account is used when you purchase a good or service and don't pay immediately and plan on paying in the future.
This is the Accounting Equation.
What is Assets = Liabilities + Equity
Bonus: What is the extended version.
These are the methods used to calculate depreciation.
What is Straight Line, Units of Production, & Double-Declining Method.
These three methods are used to value inventory costs.
What is FIFO, LIFO, & Weighted Average.
Bonus: What do the abbreviations stand for?
This Financial Statement is made before the Balance Sheet, but after the Income Statement.
What is the Statement of Owners'/Stockholders' Equity.
Of the main equity accounts, this account has a normal credit balance.
What is Owner's, Capital?
This is the equation for COGS
What is (Beg. Merch Inv. + Purchases) - Ending Merch Inv = COGS?
Accounts such as pre-paid, pre-paid insurance, depreciation etc. are corrected when doing these types of entries.
What are adjusting entries?
What is Going Concern Assumption.
This financial statement is where the account Unearned Revenue is found.
What is the balance sheet?
This account is used to close revenues and expenses.
What is the income summary?
When receiving a discount from a manufacturer, credit terms are read like this.
Hint: Use 15 days and 3% discount
What is 3/15, n/30.
This method of accounting records revenues when earned and expensenses when incurred.
On the Bank Reconcilliation, these terms are used.
Hint: Tell us what NSF & EFT stand for.
What is Nonsufficient Funds & Electronic Finds Transfer.
These five things go on the Book side of the Reconcilliation.
What is NSF checks, EFT receipts, interest revenue, service charge, & EFT payments.
Bonus: Which ones add or subtract from the book side.
These type of Accounts have a normal debit balance.
Hint: There are three of them.
What is Assets, Expenses, & Withdrawals.
This is the equation for for Units of Production Method when calculating depreciation.
What is: (Cost - Residual Value)/Useful Life in Units
Bonus: (Per unit cost * amount used during the year)
These are the other phrases used when "depreciating" Natural Resources and Intagible Assets.
What is Depletion & Amortization.
These are repurchased back from the company when they were previously issued.
What is Treasury Stock.
These Financial Statements have the period ending on the title section at the top.
What is the Income Statement & Statement of Owners' Equity
Bonus: What is Statement of Cash Flows
These accounts are not normal accounts, but take away from the related accounts that are listed before.
Hint: The normal balances are opposite of their related accounts.
What are Contra Accounts.
For Bonds, these rates are used in calculating cash payments and the interest associated with it.
What is Market Interest Rate & States Interest Rate.