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Accounting 101
A, L & OE
Financial Statements
Vocabulary
Miscellaneous
100

What are the four FASB conceptual framework?

Objectives

Qualitative characteristics

Elements

Recognition and measurement

100
These are items owned that have monetary value
What are assets?
100

What are the financial statements?

Income Statement

Statement of Owners Equity

Balance Sheet

Statement of Cashflows
100

This accounting basis record revenue when earned and expense when incurred regardless of when cash is received and paid.

Accrual Basis

100
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
200

This is the purpose of accounting

What is to 1)identify, 2)record and 3)communicate financial information?

200

What is the fundamental of accounting equation?

Assets=Owner's Equity+Liabilities?

200

These accounts are never closed out.

Permanent account

200
What is revenue, expenses, owner's withdrawals
What is temporary accounts?
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
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is analyze a business transaction?
300
When you buy something and agree to pay for it later
What is Credit?
300
If a business closes, the claims of these individuals are settled first.
Who are creditors?
400

What are the four accounting assumptions?

Going concern

Monetary unit

Time period

Business entity

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400
Decreases both assets and owner’s equity
What is a withdrawal?
400
Property or items of value owned by a business
What is assets?
400
This system is used to analyze and record a transaction
What is a double-entry accounting?
500

What are the four general accounting principles?

Measurement principle

Revenue recognition principle

Expense recognition principle

Full disclosure principle

500

The term used to explain how quickly a company can convert assets into cash.

What is liquidity?

500

It is a legal right to property

What is a financial claim?

500

Is a list of all accounts used by a business.

What is chart of accounts?

500
Income earned from the sale of goods or services is called?
What is revenue?