Fundamentals of Accounting and Finance

Accounting Cycle

100

What is the Basic Accounting Equation?

Assets = Liabilities + Stockholder's Equity

200

A fiscal year always ends on December 31. True or False

False

300

Which of these accounting cycle steps comes first? Trial Balance or Financial Statements

Trial Balance

400

What account reduces owner's equity?

Withdrawals

500

There are 10 steps to the Accounting Processing Cycle, name one.

Source documents -> Transaction Analysis -> Record in Journal -> Post to Ledger -> Unadjusted Trial Balance -> Record/Post Adj. Entries -> Adj. Trial Balance -> Financial Statements -> Close Temporary Accounts -> Post - Closing Trial Balance

Financial Statements

100

_______ are the measurable amounts owed by the business to creditors.

Liabilities

200

GAAP stands for?

Generally Accepted Accounting Principles

300

There are 4 types of Financial Statements. Name 2 of them.

I/S, Statement of Retained Earnings, B/S, Statement of Cash Flows.

400

A balance sheet uses 'point of time' to record the date? True or False?

True

500

Do these accounts go in the Income Statement and/or the Balance Sheet? Interest Expense, Cash, Salaries Payable

I/S = Interest Expense B/S =Cash, Salaries Payable

Finance

100

Net Income = ________ - ________

Revenues - Expenses

200

The document is used to create financial statements

What is worksheet?

300

What is the extra amount paid/earned on the principal of a loan/investment?

Interest Rate

400

The relationship between current assets and current liabilities; calculated by dividing current assets by current liabilities.

What is current ratio?

500

A measure of the relationship between short-term assets and current liabilities; calculated by dividing the total cash and receivables by the current liabilities.

What is Quick Ratio?

Debits and Credits

100

Does a note payable have a NORMAL debit or credit balance?

Credit

200

Which of these accounts have a normal debit or credit balance? Revenues, Expenses, Owner's Equity

Debit: Expenses Credit: equity, revenues

300

Pizza Tribute pays $35,000 cash to buy equipment for the restaurant. What is the journal entry?

Dr. Equipment = 35,000 Cr. Cash = 35,000

400

Your company performed cleaning services for your customer worth $2,600 on account. What is the journal entry?

Dr. Accounts Receivable = 2,600 Cr. Service Revenue = 2,600

500

Does depreciation increase or decrease the value of an asset?

Decrease

Presentation

100

What Public Accounting firm is Tim interning for?

E&Y

200

CPA stands for?

Certified Public Accountant

300

A measure of the ability of a business to pay its current debts as they become due and to provide for an unexpected need for cash.

What is liquidity ratio?

400

Name the order of the preparation of financial statements:

Income Statement, Statement of Changes in Owner's Equity, Balance Sheet and Statement of Cash Flows

500

Ryan and Derek talked about the 3 ways finance is commonly classified. Name one.

Corporate finance, investments, financial markets/institutions