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Introduction
A, L & OE
Balance Sheet
GAAP
Miscellaneous
100
Area of accounting aimed at serving external users
What is financial accounting?
100
These are items owned that have monetary value
What are assets?
100
These 3 items are found at the very top of the balance sheet (in order).
What are 1) Name of business, 2) Name of the financial statement and 3) Statement date?
100
This is what GAAP stands for
What are generally accepted accounting principles?
100
Shows the company's revenues and expenses
What is the income statement?
200
Managerial Accounting is aimed to provide information for
Who are internal users.
200
A = L + OE
What is the Accounting Equation?
200
The main owner's equity account
What is capital?
200
This private sector group responsible for the creation of GAAP
What is the Financial Accounting Standards Board (FASB)?
200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300
The three legal forms a business may take
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
300
The amount of liabilities if assets are $2,000 and owner's equity is $500
What is $1,500.
300
A bank loan would be listed under this category on the balance sheet.
What is the liabilities section?
300
This GAAP principle states that accounting for a business needs to be kept separate from the personal affairs of the owner.
What is the Business Entity Assumption?
300
The effect on equity when an owner withdraws cash from the business
What is decreases?
400

A set of rules and guidelines that accountants must follow

What are GAAP?

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400
Accounts Receivable is classified on the Balance Sheet as
What is an asset?
400
The GAAP Principle states that a company should record expenses when they are used to generate revenue
What is the expense recognition principle (Matching Principle)?
400
Creditors claims on assets
What is a liabilities?
500
This involves testing business records and procedures for accuracy.
What is auditing?
500
Account on the balance sheet that represents the amount owed for purchasing supplies on credit
What is Accounts Payable?
500

The accounting equation.

What is Assets = Liabilities + Owners Equity?

500

This GAAP Principle states that revenue needs to be recorded in the period in which it was earned

What is the Revenue Recognition Principle?

500
The effect on assets when a company receives cash on their accounts receivable.
What is no effect? One assets (cash) goes up and another asset (A/R) decreases.