What area of Accting is it?
Area of accounting aimed at serving external users
What is financial accounting?
These are items owned that have monetary value
What are assets?
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?
These are used to collect written evidence of business transactions...
What are: Source Documents?
Shows the company's revenues and expenses...
What is the income statement?
Managerial Accounting is aimed to provide information for...
internal users.
A = L + OE
What is the Accounting Equation?
Assest = liabilities + owners equity
The main owner's equity account is...
What is capital?
This principle explains: Assets = Liabilities + Equity
What is Double-Entry Bookkeeping?
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
The three legal forms a business may take
What are 1)sole proprietorships, 2)partnerships and 3)corporations(LLC)?
The amount of liabilities if assets are $2,000 and owner's equity is $500
What is $1,500.
A bank loan would be listed under this category on the balance sheet.
What is the liabilities section?
The Debit-Credit rule states: Debits go on the _____ and Credits go on the ______.
What is: Left - Right?
The effect on equity when an owner withdraws cash from the business...
What is decreases?
Person who examines financial statements to verify that they are prepared according to GAAP
Who are Auditors or CPAs?
This is the difference between total assets and total liabilities. (A - L = ? )
What is Owner's Equity?
Accounts Receivable is classified on the Balance Sheet as
What is an asset?
The Principle states that a company's expenses must be matched with revenue..
What is the Matching Principle?
Creditors claims on assets are considered a ...
What is a liability?
This involves testing business records and procedures for accuracy.
What is auditing?
Account on the balance sheet that represents the amount owed for purchasing supplies on credit
What is Accounts Payable?
A balance sheet is prepared to in order to show this.
What is: a company's financial position?
This Principle states that accounting information should be based on the actual cost
What is the Cost Principle?
The effect on assets when a company receives cash on their accounts receivable(AR).
What is no effect? One assets (cash) goes up and another asset (A/R) decreases.