The money a business brings in from being in operation.
What is Revenue?
100
What is the name of the financial statement that calculates net income or net loss?
What is the Income Statement?
100
The series of accounting activities included in recording financial statement information for a fiscal period.
What is the Accounting Cycle?
100
Calculate the adjustment for the Supplies account if the following are true: Supplies balance=$800, Amount of Supplies on hand at end of period=$500.
What is $300.
100
What is the difference between temporary and permanent accounts?
The temporary accounts are zeroed out at the end of the fiscal period, but permanent accounts go into the next fiscal period with a balance.
200
The money a business pays out for operational costs.
What are expenses?
200
The three questions, in order, that are answered in the heading of a financial statement?
What are Who, What, and When?
200
What is the step in the Accounting Cycle that is immediately after "Journalize Adjusting and Closing Entries"?
What is Post Adjusting and Closing Entries.
200
What is the new balance for the Prepaid Insurance account if the following is true: Prepaid Insurance Beginning Balance=$650, Amount of Insurance On Hand at the end of the period according to the Insurance Company=$400.
What is $400.
200
Are a business's expense accounts considered temporary or permanent accounts?
What is temporary.
300
The percentage relationship between one financial statement item and the total that includes that item.
What is component percentage?
300
What is the name of the financial statement that calculates the worth of the business on a specific day?
What is the Balance Sheet?
300
What is the name of the paper used to prepare the Income Statement and Balance Sheet?
What is the Worksheet.
300
What is the purpose of the first Closing Entry.
What is to close the Sales account.
300
List the three type of permanent accounts.
What are Assets, Liabilities, and Capital accounts.
400
The accounting concept that states, "Financial statements should contain all information necessary to understand a business's financial condition.
What is Adequate Disclosure?
400
What are the names of the three sections on an Income Statement?
What are Revenue, Expenses, and Net Income or Loss?
400
At any time during the Accounting Cycle, this is the best way to see if your accounts are in balance?
What is add up all debits, add up all credits, see if they are equal.
400
What does the third Closing Entry look like if the company had a Net Loss of $3,000.
What is Debit Capital for $3,000, and Credit Income Summary for $3,000.
400
What type of accounts appear on the Post Closing Trial Balance, permanent or temporary?
What are permanent.
500
The accounting concept that states, "Financial statements are prepared with the expectation that a business will remain in operation forever."
What is Going Concern?
500
What is the Accounting Equation as illustrated by the Balance Sheet?
What is Assets = Liabilities + Owner's Equity
500
If these are the balances at the end of the fiscal period what is the new capital balance: Beginning Capital Balance= $10,000, Net Income=$1,000, Drawing=$1,000?
What is $10,000.
500
What does the last Closing Entry look like if the balance of the owner's drawing account is $1,200 on the worksheet.
What is Debit Capital for $1,200 and Credit Drawing for $1,200.
500
What kind of problem would a business have if they didn't zero out the revenue and expense accounts at the end of the fiscal period?
The balances would carry over to the next fiscal period's financial statements and net income or net loss would be inaccurate for that fiscal period.