So Basic
Accounts Payable is an example of this type of account.
What is a liability?
Account used to record transactions describing money owed to a company.
What is accounts receivable?
The first financial statement prepared at the end of an accounting cycle.
What is an income statement?
The entry type used to increase the value of an expense account.
What is a debit?
The section of the balance sheet you would expect long-term debt owed to be found.
What is non-current liabilities?
The body that develops the generally accepted accounting principles.
What is FASB (The Financial Accounting Standards Board)?
The total value of all debit transactions equals this.
What is the total value of all credit transactions?
A firm's cumulative net income after accounting for dividends.
What is retained earnings?
The statement describing the change to retained earnings in an accounting period.
What is the Statement of Owner's Equity (Retained Earnings)?
The entry type to decrease the value of the dividend account.
What is a credit?
The section of the income statement one would find cost of goods sold.
What is gross profit?
The financial statement that provides a snapshot of what a company owns and owes.
What is the balance sheet?
The account which is increased to reflect the usage of electricity by a business.
What is utilities expense?
The financial statement where one could find the amount of net cash generated or used by a company in a period.
What is the cash flow statement?
All of the account types increased by a credit entry.
What are liability, owner's equity and revenue accounts.
The area on the income statement which include loss the sale of a piece of equipment.
What is the non-operating expenses section?
Goodwill is an example of this type of asset.
What is an intangible asset?
The change in total assets when a company collects $1,000 from a customer who previously purchased goods on account.
What is no change?
The statement that describes the profitability of a company for a period.
What is the income statement?
The normal balance of a revenue account is kept on this side of a T-account.
What is the credit side?
EBIT is another way to describe this level of income on an income statement.
What is operating earnings (income)?
Current Assets - Current Liabilities
What is working capital?
A revenue account would be reset at the end of an accounting period with this type of closing entry.
What is a debit entry?
The statement and section that describes a company's book value.
What is the balance sheet and the Owner's equity section?
The balance sheet account type that is decreased by credit entries.
What are assets?
The exact section of a financial statement where you would find the pre-paid expenses account.
What is current assets?