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Accounting 101
A, L, OE
Balance Sheet
Income Statement
Miscellaneous
100
Three types of businesses operated for profit
What are 1) Service businesses, 2) Merchandising businesses, 3) Manufacturing businesses
100
These are items owned that have monetary value
What are assets?
100
These 3 items are found at the very top of the balance sheet.
What are 1) Name of business, 2) Name of the financial statement and 3) Statement date?
100
These are the components on income statement
What are revenue and expenses?
100

Needed to convert a company’s accounting records from cash to accrual basis accounting

What are a series of journal entries.?

200

A commonly-followed set of accounting rules, standards, and procedures for reporting financial information to external users. Attempts to improve the clarity, reliability, and comparability of financial information

What is Generally Accepted Accounting Principles, or G.A.A.P?

200
These are the 2 ways the fundamental accounting equation is stated.
What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities?
200
A balance sheet is prepared to in order to show this.
What is the financial position of a person or business?
200

The profit that remains after all expenses have been subtracted from revenue during a certain time period

What is Net Income?

200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
300
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
300
A bank loan would be listed under this category on the balance seet.
What is the liabilities section?
300

This is considered the normal balance of Asset

What is debit?

300

Revenues and expenses are recognized and recorded at the time they are earned or incurred.

What is the accrual method?

400
Two Accounting methods
What are Accrual and Cash Accounting?
400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400
These are 3 components on a balance sheet.
What are 1) Assets, 2) Liabilities and 3) Owner's Equity?
400
Revene is recognized when goods or services have been delivered
What is accrual accounting?
400

The function of accounting that helps an organization make well-informed decisions through the measurement, analysis, and communication of accounting information.

What is Managerial Accounting?

500

Focuses on the management of the assets, liabilities, and cash flow of an organization, financial analysis like ROI and ROE, and financial planning of future growth.

What is finance?

500

What is the expanded accounting equation?

What is assets = liabilities + beg. cap+ +revenue-expenses

500
This is another term used on the balance sheet that refers to Owner's Equity.
What is capital?
500
Revenue and expenses are closing entry accounts.
What are temporary accounts?
500

To begin preparing financial statements from the adjusted trial balance

What is extending the Balance Sheet & Income Statement amounts?