Chapter 1
What does GAAP stand for?
Generally Accepted Accounting Principles
To INCREASE an Asset, do you debit or credit it?
Under the _______ basis of accounting, revenues and expenses are reported on the income statement in the period in which cash is received or paid.
cash
Which financial Statement should be prepared first?
The income statement
In this movie a little lion is tricked by his evil uncle but eventually he returns home to become the king! What movie is this?
The Lion King
What is the Accounting Equation?
Assets = Liabilities + Owner's Equity
To DECREASE a liability to you debit or credit the account?
DEBIT
Under the ________ basis of accounting, revenues are reported on the income statement in the period in which a service has been performed or a product has been delivered.
accrual
In the income statement, Revenue Minus ________ = Net income?
Expenses
In which movie does a half woman half fish disobey her father to pursue her heart's desires?
The Little Mermaid
Name the Financial Statement in which Net Income is reported.
Income Statement
To INCREASE a revenue account, do you debit or credit it?
CREDIT
An _______ occurs when revenue has been earned or an expense has been incurred but has not been recorded.
accrual
The property, plant, and equipment, also described as fixed assets or plant assets are reported on which financial statement?
Balance Sheet
In which movie does a beautiful smart young lady fall in love with a hideous beast?
Beauty and the Beast
Which Financial Statement reports the changes in the retained earnings for a period of time?
The retained earnings statement
A complete list of all the accounts contained in the general ledger of a Company is called what?
Chart of Accounts
Typically fixed assets, except land, lose usefulness overtime. the net book value of the fixed assets decreases. What is this called in accounting?
Depreciation
What is Step 1 in the accounting cycle?
Step 1. Analyzing and Recording Transactions in the Journal
A little clown fish gets lost and other fish go looking for him. What movie was this?
Finding Nemo
Which Financial Statement reports the assets, liabilities, and stockholders' equity of a Company?
Balance Sheet
The liability created by receiving cash in advance from a customer before providing a good or service to the customer is called what?
Unearned revenue
The adjusting process takes place:
a) At the beginning of the period
b) Throughout the period
c) At the end of the period
At the end of the period
Which of the following is an ASSET?
A) Accounts Payable
B) Common Stock
C) Accounts Receivable
D) $1,500 Wage Expense
In which movie does a large, hideous, man-like being become best buddies with a donkey and also falls in love with the princess he is supposed to be delivering for another guy to marry?
Shrek