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Accounting 101
A, L & OE
Accounting Cycle
Vocabulary
Law
100

Accounting standard in the U. S.

What is Generally Accepted Accounting Principles (GAAP)

100
These are items owned that have monetary value
What are assets?
100
It is anything of value that a person or business owns and therefore controls
What is property?
100

What is Asset, Liability, Owners Capital

What is permanent accounts?

100

When a business buys a computer with cash, it results in cash ______, and computer equipment ________ on the Balance Sheet

What decreases and increases?

200

The organization that oversees all public company financial standards

Securities and Exchange Commission (SEC)

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
The business or person selling the item on credit, can be any person/business you owe money to
Who is a creditor?
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

When recording a journal entry, the entry to record the receipt of cash as part of a sale is done as a ________

Debit

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

Principle that expenses are record in the same period as the revenue earned

Matching principle

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

A system of recording a debit and credit for each transaction

Double entry accounting

500
This involves testing business records and procedures for accuracy.
What is auditing?
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?