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?
Revenue and Expenses over the year.
What is the Income Statement?
The right side of a T-account?
What is a credit?
Vacation benefits and pension benefits, for example.
What are estimated liabilities?
When a bond sells at higher than the market rate.
What is a premium?
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 a debit?
Long-term liability requiring a series of payments to the lender.
What is an Installment Note?
Net income not distributed as dividends to stockholders, but kept in stockholder equity.
What is retained earnings?
Two methods for recording uncollectible accounts.
What are allowance method and direct write-off method?
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?
Three options for issuing bonds.
What is at par, at a discount, at a premium?
The result of revenue being greater than expenses.
What is Net Income?
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?
Daily Double: The right of shareholders to purchase their share of common stock later.
What is a pre-emptive right?
A list of all accounts used by a business is referred to as this.
What is Chart of Accounts?