If you follow the ______________ of accounting, you follow the revenue rocognition and matching principles.
What is the accrual basis of accounting?
100
A type of prepaid expense used to ensure safety for a company. (E.g. health and fire)
What is insurance?
100
The increasing side of an Expense Account.
What is debit?
100
There became a need for accounting because managers and owners of a company were not always the same people.
What is the industrial revolution?
100
Liabilities, Assets and Owner's Equity
What is a Balance Sheet?
200
Frank bought 20 kg of flour for his bread shop. He will pay for it next month, but he recorded it in his books anyways. This is the WRONG way of accounting.
What is the cash basis of accounting?
200
Teacher salary, in the perspective of a school.
What is an accrued expense?
200
Frank uses his Visa card to pay for his shopping. On the liabilties account, he will enter information on this side.
What is credit?
200
Globalization (companies around the world working together) and Internet.
What is information age?
200
Shows individual economic events, shown in the form of the basic accounting equation.
What is a Transaction Analysis Sheet?
300
Teacher, Ms. Christina has taught 7 students in May. They will pay her in June, the ____________ ______________ Principle requires that she record it in May.
What is the Revenue Recognition Principle?
300
Yesterday I paid for a plane ticket to Australia. I will not be leaving until July.
What is an Unearned Revenue?
300
Adding journal information a set of accounts called a ledger.
What is posting?
300
This type of business venture can be easily sold to other through shares and high publicity.
What are corporations?
300
Revenue, expenses and net income.
What is an Income Statement?
400
A calender year is an example of this. Not an interim period.
E.g. Feb. 1 to Jan. 31
What is a fiscal year?
400
Judy bought $2,500 of supplies for Judy's Craft Store. By Apr. 30, she has only used $1,000. Show the T-account for this.
What is the T-Account for this scenario?
400
After you have completed the recording process, there are revenues, expense and capital assets records which need "fixed," due to the passage of time. This is called _____________________.
What are adjustments?
400
Payments to shareholders.
What are dividends?
400
Add: Investments, Net Income
Less: Drawings
What is a Statement of Owner's Equity?
500
Paul states the value of his pesonal laptop on his company balance sheet. He is breaking this assumption.
What is the Economic Entity Assumption?
500
See Calvin and Hobbs scenario.
What is the Journal for this scenario?
500
Analyse the transaction, enter into journal and transfer into a ledger.
What are the steps in the recording process?
500
Identify the ethical situation, find the stakeholders and consider all possible options.
What is the 3 steps in solving an ethical dilemma?
500
Each year, a public corporation such as McDonalds, publishes financial and non-financial information to interested people, including shareholders.