Accounting 101
It is mandatory for accountants to follow these set of rules.
What are the Generally Accepted Accounting Principles (GAAPs)?
The point of the income statement is to calculate for what?
Cash is considered to be a...
Current Asset
Property of items of value that is owned by an individual or a business
What are assets?
Grade 11 accounting is all about "recording transactions", what is the term used to describe this?
What is Bookkeeping?
Alphabetical order
A 3 year bank loan is considered to be a....
This term describes how quickly an asset can be converted into cash.
Liquidity
What must you double underline on the BALANCE SHEET?
What are Total Assets and Total Liabilities & Owner's Equity?
This account is the CONTRA account to Capital
What are Drawings?
Prepaid Rent is considered to be a...
Current Asset
This accounting tool list all accounts and their corresponding account numbers.
What is the "Chart of Accounts"?
From what we have learned IN class... How many steps are in the accounting cycle?
8
What is the equity equation?
Beginning Capital + Net Income (- Net Loss) - Drawings = Ending Capital
1) Late invoices
2) Prepaid Expenses
3) Unearned Revenue
This term is used to describe the money that is invested into a business.
These (3) represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
Paul pays his utility bill for the month with cash.
What are the accounts affected by this transaction and state whether they are debited or credited.
Debit "Utilities Expense"
Credit "Cash"
What are the accountants that are affected by (and state whether they are debited or credited) the ADJUSTMENT that is made by a landlord?
Debit "Unearned Revenue"
Credit "Rental Revenue"
This term states that "Revenue is recorded when it is earned, not necessarily when cash changes hands."
What is the "Revenue Recognition Principle"?