GAAP Basics
This acronym stands for the standard framework of accounting principles used in the U.S.
What is Generally Accepted Accounting Principles?
This QBO feature categorizes transactions from your bank automatically.
What are Bank Rules?
This financial statement shows assets, liabilities, and equity.
What is the Balance Sheet?
This happens when you enter the same expense twice.
What is a Duplicate Entry?
The “father of accounting” who wrote about double-entry bookkeeping.
Who is Luca Pacioli?
This principle requires that expenses be recognized in the same period as the revenues they help generate.
What is the Matching Principle?
The module used to compare cleared bank transactions to QBO records.
What is Reconciliation?
This shows a business’s performance over a period of time.
What is the Income Statement / P&L?
The most common reason accounts don’t reconcile.
What are Unmatched or missing transactions?
This law was enacted in 2002 in response to accounting scandals.
What is Sarbanes-Oxley (SOX)?
This accounting standard governs the recognition of revenue under U.S. GAAP.
What is ASC 606?
The QBO feature used to track profit by business unit or location.
What are Classes and Locations?
This statement explains changes in cash from operations, investing, and financing.
What is the Statement of Cash Flows?
When clients pay personal expenses from the business.
What is Commingling?
This now-defunct firm was involved in the Enron scandal.
What is Arthur Andersen?
When a SaaS client receives payment for a 12-month subscription up front, it should be recorded in this liability account.
What is Deferred Revenue?
This tool lets you automatically invoice recurring subscriptions.
What is Recurring Transactions?
These two statements are most commonly requested by clients.
What are the P&L and Balance Sheet?
Misclassifying meals and entertainment can lead to this tax issue.
What is Loss of Deductibility?
This global standard is GAAP’s international counterpart.
What is IFRS?
This type of account, like Accumulated Depreciation, offsets the balance of a related asset account.
What is a Contra-Asset Account?
This type of report shows A/R balances broken down by time overdue.
What is an Aging Report?
This method reconciles net income to cash from operations.
What is the Indirect Method?
The issue when liabilities show up negative on a balance sheet.
What is Incorrectly entered vendor credit or refund?
The primary body responsible for establishing U.S. GAAP.
What is the FASB (Financial Accounting Standards Board)?