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Accounting 101
A, L, OE
Balance Sheet
Income Statement
Miscellaneous
100

A promise to pay for goods or services provided by an individual or organization at a later date.

Purchase On Account

100

The current balance of all money owed to a company for goods and/or services it sold to its customers, but that haven’t yet been paid for by its customers.

What is Accounts Receivable?

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

A summary-level report used to convey the financial position and performance of an organization within a specific time period.

What is the Financial Statement ?

100

A report provided by a bank that outlines and summarizes an account holder’s bank account transactions that occurred during a specific month.

What are bank statements?

200

A physical or electronic paper trail that verifies the occurrence and details of a transaction.

What is a source document?

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
This is Net Income (loss)
What is revenue minus expenses?
200

In addition to an owner, these people also have claims against a company's assets.

Who are creditors?

300

A list of all account titles and account numbers used in a ledger.

What is the Chart of Accounts?

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 nominal balance of revenue
What is credit?
300

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

What is the accrual method?

400

A multi-step process of identifying, analyzing, recording, and processing a company’s financial transactions over an accounting period.

What is the Accounting Cycle?

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400

These are 2 components on a income statement.

What are revenue and expenses?

400

A cost incurred to provide products and services to customers and operate a business.

What is an expense?

400
This role is often confused with that of an accountant.
What is a bookkeeper?
500

The value of a company, calculated by multiplying the number of outstanding shares by the current stock price.

What is Market Capitalization?

500
What is the expanded accounting equation?
What is assets = liabilities + beg. cap+ contr cap+revenue-expenses-cap distr
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

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?