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Assets
Liabilities
Balance Sheet
GAAP
Miscellaneous
100
Something of value owned by a business or person
What is an asset?
100
A debt that must be paid to a company or individual.
What is a liabililty?
100
This answers the three questions on the top of the balance sheet, who, what or which, and when.
What is the heading of the balance sheet?
100
These are the rules and standards that accountants must follow.
What is Generally Accepted Accounting Principles?
100
A company exchanges one item of value for another.
What is a transaction?
200
The first asset listed on the Balance Sheet.
What is cash?
200
This liability should appear first in the Balance Sheet
What is Accounts Payable
200
The Balance Sheet shows the financial position of a company. What does it report?
What is assets, liabilities, and owner's equity?
200
A sole proprietor must keep all personal assets and personal liabilities separate from the business.
What is the business entity concept?
200
A customer promises to pay the business later for a service performed, which accounts are affected?
What is accounts receivable and capital?
300
After supplies, this account is listed next.
What is land?
300
Liabilities should be listed in this order.
What is a payment due date?
300
The Balance Sheet must balance to this.
What is the fundamental accounting equation, Assets = Liabilities + Owner's Equity.
300
All assets of a business are to be recorded at the cost price or purchase price on the balance sheet regardless if it can be sold for a higher price.
What is the cost principle?
300
A construction company purchases a cement truck that costs, $50 000. The company pays $10 000 cash and the rest is taken out as a bank loan. What accounts are affected?
What is equipment, cash, and bank loan?
400
The total assets number should be equal to this.
What is total liabilites and owner's equity?
400
This liability arises when a company wants to purchase a building.
What is a mortgage?
400
Every time you start a column, you must insert this symbol in front of the number
What is a dollar sign?
400
An accountant must assume that a business will continue indefinitely into the future.
What is the going concern assumption?
400
The owner invests additional money into the business. How is this recorded?
What is an increase in cash and capital?
500
Assets are listed in this order.
What is liquidity?
500
Total liabilites is added to this number to balance to total assets.
What is owner's equity?
500
This term is used to describe the assets, liabilities, and equity of a company at a particular date.
What is financial position?
500
Currently in Canada, all companies must now use this set of accounting guidelines.
What is IFRS? Internationsl Financial Reporting Standards.
500
A company bought a building for $200 000. A few years later they sold it for $250 000. $50 000 cash is paid and the remaining $200 000 will be paid later. How is this transaction recorded?
What is an increase in capital, an increase in cash, an increase in accounts receivable, and a decrease in building?