Financial Statements
A company's financial position at a point in time.
What is the Balance Sheet?
Named after a letter of the alphabet, this tool helps you analyze both sides of an accounting transaction.
What is a T-account?
When collecting sales tax from customers, which account is credited?
What is Sales Tax Payable?
Legal fees, promoters' fees, and other costs to start a corporation.
What are organization expenses?
8 step process of analyzing the transaction, journalizing, posting, preparing F/S, etc.
What is the Accounting Cycle?
What is the Income Statement?
The right side of a T-account?
What is the Credit?
The date a note must be repaid.
The right of shareholders to purchase their share of common stock later.
What is preemptive right?
Cash kept on hand for small expenses.
What is petty cash?
This F/S organizes assets and liabilities into subgroups.
What is Classified Balance Sheet?
The left side of a T-account.
What is the Debit?
The two methods for recording uncollectible accounts.
What are allowance method and direct write-off method?
Net income not distributed as dividends to stockholders, but kept in stockholder equity.
What is retained earnings?
The act tht was passed by the US Congress in reaction to the accounting scandals of public companies is the __________ Act.
What is Sarbanes-Oxley (SOX)?
These journal entries prepare the temporary accounts for the new fiscal period.
What are closing entries?
A journal entry must have at least one debit and one credit.
What is double-entry accounting?
The formula for calculating interest.
What is I =
P x R x T?
A liability that requires a series of payments to the lender.
What is installment note?
The result of revenue being greater than expenses.
The last step in the accounting cycle, after the closing entries.
What is Post-Closing Trial Balance?
To record an increase in Service Revenue, you record a __________.
What is a credit?
This liability must be recorded when the future event is probable and the amount is reasonably estimated.
What is a contingent liability?
When a bond sells at higher than the market rate.
What is a premium?
DAILY DOUBLE: A list of all acounts used by a business is referred to as this.
What is Chart of Accounts?