Debit or Credit?
For an asset account like Cash, this side of the T-account increases the balance.
What is the debit side?
This financial statement shows assets, liabilities, and equity at a single point in time.
What is the balance sheet?
This three-letter U.S. government agency collects federal income taxes and your soul every April.
What is the IRS?
This is the “good” audit opinion that says the financial statements are presented fairly in all material respects.
What is an unmodified (or unqualified) opinion?
This is the typical number of hours in a standard full-time work week in most accounting jobs.
What is 40 hours?
For liabilities and equity, this side of the T-account increases the balance.
What is the credit side?
This statement shows revenues, expenses, and net income over a period of time.
What is the income statement (or statement of profit and loss)?
This common tax form is used to report wages you earned from an employer.
What is a W-2?
Auditors love this type of evidence: a written response straight from a third party, like a bank or customer.
What is an external confirmation?
This three-letter credential is often the next big step after an accounting degree and requires passing a brutal exam.
What is the CPA?
Revenue has this normal balance, which is why it makes net income go up.
–What is a credit balance?
The section of the statement of cash flows that includes buying equipment or selling long-term assets.
What are investing activities?
When you’ve had more tax withheld during the year than you actually owe, you get this happy (or un-happy) surprise.
What is a tax refund?
This technique lets auditors test only part of the population instead of every single transaction. Not a snack, sadly.
What is sampling?
When your boss says you’ll be paid 1.5 times your hourly rate for working late during busy season, they’re talking about this.
What is overtime pay?
You pay office rent in cash. This account is debited, and this account is credited. Name both.
What are Rent Expense (debit) and Cash (credit)?
This accounting principle says expenses should be recorded in the same period as the revenues they helped generate.
What is the matching principle?
A tax system where higher income is taxed at higher rates is called this.
What is a progressive tax system?
When an auditor walks around the warehouse counting boxes, they’re primarily testing this balance sheet account.
What is inventory
This two-word phrase describes the money your employer puts into your retirement account if you contribute—basically free money you should never leave on the table.
What is the employer match (or company match)?