Journal Entries
The act of keeping or making records of economic transactions.
Journal Entry
Which financial statement is of a "snapshot" in time?
Balance Sheet
Who are the primary users of financial accounting?
External users (creditors & investors)
The justifications behind committing fraud is referred to as what shape?
Fraud triangle
A purchase made with cash generates what type of source document?
Receipt
The total assets balance should be recorded where on a trial balance?
In the debit column
Which financial statement is referred to as the P & L in the business world?
Income Statement
What is the basic accounting equation?
Assets = Liabilities + Equity
The specialty practice area of accounting that investigates whether firms engage in financial reporting misconduct.
Forensic accounting
The terms 2/10, n/30 on an invoice mean what?
If you pay within 10 days, you will receive a 2 percent discount.
To ensure all entries balance with atleast 2 accounts
The balance sheet should be recorded in order of what?
Liquidity
What does CPA stand for?
Certified Public Accountant
This individual was an American financier who ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
Bernie Madoff
FOB on an invoice stands for what?
Free on board
The credit effect of a revenue account is what?
Increase
This financial statement showcases the following three activities of a business. Financing, Operating and Investing
The statement of cash flows
What does GAAP stand for?
Generally accepted accounting principles
This act passed in 2002 is a federal law that mandates certain practices in financial record keeping and reporting for corporations.
This accounting method assumes that the latest items bought are the first items to be sold.
LIFO
The debit affect of an expense account is what?
Increase
The header of every financial statement should follow this format.
Business/Corporation Name
Financial Statement Name
Date/Time Period
Deloitte, PWC, EY and KPMG are referred to as what?
The Big 4
You can find annual reports and filings on corporations at this government website.
SEC - Securities Exchange Commission
This method of valuing inventory means the oldest inventory gets shipped out to customers before newer inventory.
FIFO