Accounting Formulas/Business Q's
What is the Fundamental Accounting Equation?
A=L+O/E
Accounting for purchases must be recorded at the cost price for the purchaser
Cost Principle
The left side of the T Account
Debit
The name of Leaside's mascot
Lance Lancer
Revenues-Expenses=
Net Income or Net Loss
Assumes that a business will continue to operate unless it is known that it will not.
The Continuing Going Concern
Accounts Payable is what type of account?
Credit or Liability
The year Leaside H.S. first opened it's doors for students
1945
Three forms of business ownership's are?
Sole Proprietor
Partnership
Corporation
Each expense item related to revenue must be recorded in the same accounting period as the revenue it helped to earn
The Matching Principle
When Accounts Receivable has a credit balance, this is called?
Exceptional Balance
The name of Leaside's business club
DECA
There are 4 types of businesses, name 3 of them
Service
Merchandising
Manufacturing or Producing
Not for Profit Organization
Provides that the accounting for a business must be kept separate from the personal affairs of the owner
The Business Entity Concept
This financial statement MUST balance and is measured in credits and debits
Trial Balance
The 3 Leaside colours
Black, green, gold
Invoices, receipts and Purchase Orders are all examples of what?
Source Documents
Accounting for a business should be fair and reasonable
Principle of Conservatism
Name the credit and the debit for the following transaction:
The owner withdraws money for their personal use
Debit- Drawings
Credit-Cash
St. Anne's used to have a grade 13(OAC). What year did the province of Ontario phase out Grade 13?
2003