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Accounting 101
A, L & OE
Balance Sheet
GAAP
Miscellaneous
100
These are the 5 main activities involved in accounting
What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5) Establishing controls to promote accuracy and honesty among employees?
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
This is what GAAP stands for
What are generally accepted accounting principles?
100

Quick Books and Quicken are examples of these.

What are accounting computer programs?

200
This is the purpose of accounting
What is to 1)identify, 2)record and 3)communicate financial information?
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 in order to show this.

What is the financial position of a person or business?

200

This professional organization is responsible for the creation of GAAP

What is the American Institute of CPAs (AICPA)?

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 GAAP principle states that accounting for a business needs to be kept separate from the personal affairs of the owner.
What is the Business Entity Concept?
300
If a business closes, the claims of these individuals are settled first.
Who are creditors?
400

These are 3 professional accounting organizations.

What are American Institute of Certified Public Accountants (AICPA), Association of Chartered Certified Accountants and Institute of Management Accountants?

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

These are 3 examples of organizations that may be interested in a company's financial position.

What are 1) Banks 2) Suppliers and 3) Government?

400
The GAAP Principle states taht accounting for a business should be fair and reasonable.
What is the Principle of Conservatism?
400
This role is often confused with that of an accountant.
What is a bookkeeper?
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
This is another term used on the balance sheet that refers to Owner's Equity.
What is capital?
500
This GAAP Principle states that a business will continue to operate until it no longer does.
What is the Continuing Concern Concept?
500
This represents the usual length of a fiscal period.
What is one year?