Module 1
Accounting is often described as the ___________ because it is the primary means of communicating financial information about an enterprise to various users. These users include investors, creditors, management, governmental agencies, and labor unions.
What is "the language of business"?
This statement is also known as the statement of financial position, it shows the financial standing of an entity at a specific point in time, listing its assets, liabilities, and equity.
What is the balance sheet?
To record an economic event in accounting we make a ______ that is recorded in a journal.
What is a "journal entry"?
In this type of accounting, the information we prepare is designed to help external users, primarily investors and creditors, make decisions about providing resources to the company.
What is financial accounting?
This statement details the company’s financial performance over a period of time, showing revenues, expenses, and profits or losses.
What is the income statement?
This is the name used for the left-hand side of a t-account.
What is "debit"?
These are the three objectives of financial accounting information.
What are:
1. Making investment and credit decisions;
2. assessing future cash flows; and
3. learning about economic resources and claims.
This statement explains the changes in cash and cash equivalents, categorizing cash flows into operating, investing, and financing activities.
What is the statement of cash flows?
This is the name used for the right-hand side of a t-account.
What is "credit"?
These are the three key financial statements.
What are:
1. The balance sheet;
2. the income statement; and
3. the statement of cash flows?
This is fundamental equation is used to record all economic events.
What is the accounting equation - Assets = Liabilities + Equity?
Visually, we _________ the credit portion of a journal entry to distinguish it from the debit portion.
What is indent?
The __________ is the rule making body for accounting and the rules that they make are called _______.
What are the "Financial Accounting Standards Board (FASB)" and "Generally Accepted Accounting Principles (GAAP)"?
_______ represent the inflows or enhancements of assets resulting from delivering goods or services to customers, while ______ are the outflows or consumption of assets that occur as a company makes goods or services that it will sell to customers.
What are revenue and expenses?
The left-hand side of the accounting equation increases with a ______ and the right-hand side with a ______.
What are "debit" and "credit"?