Expenses are recorded when they are incurred in this accounting method
What is accrual accounting?
100
this electric company was indicted for massive accounting fraud & went bankrupt causing thousands of employees to lose their pensions
What is Enron?
100
this is the account used to store an employee's vacation dollars earned
What is Vacation Payable?
100
The mode in which company setup is done
What is history mode?
100
this inventory system was made famous by walmart
What is perpetual inventory system?
200
Not spending 3 days looking for a $3 error is an example of following this accounting principle.
What is the cost benefit principle?
200
the person in charge of writing the checks is not also in charge of cash control.
What is separation of duties?
200
This is the account created when an employee takes an advance from a company.
What is Advances Receivable?
200
the accounts that show up in a journal entry but are not directly entered as a part of the transaction are known as
What are linked accounts?
200
beginning inventory + purchases of inventory - ending inventory =
What is Cost of Goods Sold?
300
Name the 2 types of users of financial statements & an example of each.
What is internal (example: CFO) & external (investors)
300
these people make sure that the accounting in a company is done correctly & can either be company employees or from an outside firm.
What are auditors?
300
These are paid to a 3rd party on behalf of the employee.
What are benefits?
300
the error message "your accounts are not in logical order" is most likely related to this aspect of a general ledger account being out of order
What is account type?
300
what method does simply accounting use to value the cost of goods sold
What is average cost?
400
the accounting assumption that says that a business is assumed to last forever from an accounting standpoint.
What is the going concern assumption?
400
the 1st step of the accounting cycle requires that every transaction in accounting be backed up by one of these
What are source documents?
400
These give the employee benefits but do not affect the general ledger account balances; an example is sick days
What are entitlements?
400
an invoice entered during company setup that cannot be accessed in the lookup menu is called.
What is an historical invoice?
400
in this inventory system a physical count of inventory on hand is taken at the end of each accounting period so that an adjusting entry can be made to increase expenses & decrease assets
What is periodic inventory system?
500
the accounting assumption that says that the life of a business is divided into artifical time periods
What is the time period assumption?
500
the legal way for a business to avoid liability from debtors as it grows is to form this kind of business organization.
What is a corporation?
500
This multiplication factor times the employee's contribution is used to determine the employer's EI contribution
What is 1.4
500
the default type x account that is created when a new data file is crated with no preexisting accounts
What is current earnings?
500
the widespread use, increase power, & lower costs of these made the use of the perpetual inventory system economically feasible