Accounting
What is the Accounting Equation
Assests = Liabilities + Stockholder's Equity
What is a budget?
A budget is a plan in which you forecast and track your income and expenses
Name the three types of business ownership?
Sole Proprietorship, Partnership & Corporation
Which Financial Statement shows how much the business earned during a given time period.
Income Statement
What does a CPA Stand for?
Certified Public Accountant
What is the first step in the Accounting Cycle
Analyze Transactions
Give one example of debt that is considered bad debt.
Give one example of debt that is considered neutral debt.
Credit card debt is often considered bad debt.A mortgage is often not considered to be bad debt but instead is more neutral.
The business activities cycle includes three main type of activities:
Financing, Investing and Operating
Which financial statement shows the amount of money that has been kept in the business over time?
Statement of Retained Earnings
Forensic Accounting
What steps in the accounting cycle need to be completed before the creation of financial statements?
Analyze transactions, journalize, post, prepare worksheets, journalize and post adjusting entries
Tell me what Financial literacy is and what it involves.
applying accounting principles to get the most out of your personal finances and meet your financial goals.
Involves budgeting, saving, and investing
What are the three primary types of business?
Service, Merchandising, Manufacturing
Shows the starting and ending amounts of cash in the business during the time period, as well as where all the cash came from and went to during the time period:
How is A.I. Being integrated within the world of accounting?
To help track accounts, spending habbits, and to speed up daily tasks that employees already know how to do.
5. Why is it important that temporary accounts be reset to zero at the end of the accounting period?
Temporary accounts need to be reset to zero at the end of the period to ensure that accounts that only cover a period of time, such as revenue and expense, accurately track only the activity in the selected period.
Are Student Loans a form of Bad Debt?
No, they are a form of Netrual Debt. Student loans are sometimes unavoidable and as long as you make your payments on time they can be a good incomes sourse to get you through college.
How do the activities that occur in the financing step of the business activity cycle affect what can happen in the investing step?
The activities in financing and investing allow the business to engage in operating.
What are the three types of accounts listed on the Balance Sheet
Assets, Liabilities, Equity
Name one type of skill that is considered to be an employability skill in accounting?
What is the difference between a Debit and a Credit
A debit is something that increases an assest such as equipment. It also increases assets and expenses
While a Credit is something that decreases Cash. It also increases liabilities, owner's equity, and revenue.
How much Money should you have in an emergency fund at any given time?
Around 3-6 months woth of expenses.
Provide two examples of each type of business activity.
The three types of business activity are financing, investing, and operating. Some examples are: (1) Financing: borrowing money from a bank, raising money from investors in return for ownership; (2) Investing: purchasing long-term assets such as machinery, equipment, buildings, and land, selling or disposing of long-term assets; (3) Operating: paying employees, selling products to customers
What are the 3 primary activities listed on the statement of cash flows
Operating, Investing, and Financing.
What is a formal examination of an entity’s financial situation?