Business Types and
Basic Rules
Basic Rules
This is the accounting term that means RIGHT.
What is CREDIT?
A 12-month accounting period that usually ends on the last day of any month.
What is a fiscal year?
The acronym that represents the Rules of Debits and Credits.
What is AWE/CLR?
This accounting period would produce 52 financial statements within one year.
What is WEEKLY?
This is the accounting term for LEFT.
What is DEBIT?
Businesses that provide services to customers.
What is a Service Business?
The amount of time covered by an organization’s financial statements.
What is an Accounting Period?
These accounts always increase on the LEFT.
What are ASSETS, WITHDRAWALS, and EXPENSES?
This is the accounting period that would produce 12 financial statements per year.
What is MONTHLY?
The account used to record the amount we owe to another person or company.
What is ACCOUNTS PAYABLE?
Businesses that purchase goods that are ready for sale and sell them to customers.
What is a Merchandising Business?
These are two accounts that are included in OWNER'S EQUITY.
What are CAPITAL and WITHDRAWALS?
These accounts always increase on the RIGHT.
What are CAPITAL, LIABILITIES, and REVENUE?
This accounting period produces 4 financial statements per year.
What is QUARTERLY?
The account used to record the amount a customer owes for services provided today and for which the money will be received in the future.
What is ACCOUNTS RECEIVABLE?
Businesses that buy materials, convert them into products, and sell the completed products to other companies or consumers.
What is a Manufacturing Business?
The accounting term used when REVENUE exceeds EXPENSES.
What is NET INCOME?
The acronym ALORE stands for this.
What is the 5 types of business accounts. ASSETS, LIABILITIES, OWNER’S EQUITY, REVENUE, and EXPENSES?
This accounting period produce 2 financial statements per year.
What is SEMI-ANNUALLY?
The term "ON ACCOUNT" means we will always use one of these two accounts.
What is ACCOUNTS RECEIVABLE or ACCOUNTS PAYABLE?
A set of rules, standards, and principles which companies must adhere to when preparing their financial statements.
What is Generally Accepted Accounting Principles or GAAP?
What is UNEARNED REVENUE?
The type of accounting that recognizes revenue when it’s earned and expenses when they’re incurred.
What is Accrual-Based Accounting?
This is the number of financial statements produced in a company that runs an ANNUAL accounting period.
What is ONE?
The accounting term we use when the total of an account is on the same side that the account increases on.
What is NORMAL BALANCE?