Team 1
Debts owed by a business are referred to as.
What are liabilities?
A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
What is the income statement?
•Shows increases and decreases in each account, in which a running balance occurs.
What is the ledger?
Assets = Liabilities + Stockholders’ Equity
What is the accounting equation?
Appears in both the statement of stockholders’ equity and balance sheet.
What is the ending balance of retained earnings?
Cash, Accounts Receivable, Supplies, Land.
What are examples of assets?
The difference between revenue and expenses.
What is net income?
A list of a company’s accounts and account numbers .
What is a chart of accounts?
Is prepared to discover errors that effect the equality of debits and credits.
What is a trial balance?
Assets - Debit; Liabilities - Credit; Stockholders Equity-Credit; Revenues - Credit; Expenses - Debit; Dividends - Debit
What are the normal account balances?
Title, debit side and credit side.
What are the parts of the T account?
Every transaction must be recorded in at least two accounts.
What is called double-entry accounting?
The records of increases and decrease in individual accounting equation elements.
What are accounts?
Includes the transfer of financial data from the journal to the individual accounts – the date, amount, and journal page number.
What is the posting process?
The moral principles that guide the conduct of individuals.
What are ethics?
The financial statement that reports information as of a specific date.
What is a Balance Sheet?
Resources owned by a business.
What are assets?
Accounts Payable, Salaries Payable, and Unearned Revenue.
What are examples of liabilities?
A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes.
What is Generally Accepted Accounting Principles (GAAP)?
Is designed to meet the information needs of a company’s managers and other users of its financial statements.
What is chart of accounts?
The owners' claim to assets.
What is stockkholder's equity?
An authoritative body in the United States and its primary responsibility is to develop accounting principles.
What is FASB?
1 – Assets, 2 – Liabilities, 3 – Stockholders’ Equity, 4 – Revenues, and 5 - Expenses.
What is the classification of each major account group of a chart of accounts?
It requires that amounts recorded in in the financial statements be based on independently verifiable evidence.
What is measurement principle?
Sole proprietorship, partnership, corporation, and limited liability company (LLC).
What are the forms of business entities?