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

These are the 5 main activities involved in accounting

What are planning, recording, analyzing, and interpreting financial information.

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

The series of a accounting activities included in recording financial information for a fiscal period.

What is an accounting cycle?

100
What is Asset, Liability, Owners Capital
What is permanent accounts?
100
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
200

Helps ensure that all companies follow the same set of guidelines and practices when reporting financial data.

What is GAAP or Generally Accepted Accounting Principles?

200

The recording of debit and credit parts of a transaction.

What is double-entry accounting?

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

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

The type of business that performs an activity for a fee.

What is a service businesss?

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

This involves testing business records and procedures for accuracy. We also use this to test our completed work in accounting to help locate errors that have been made in our accounting cycle of activities.

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?