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Round-1
Round-2
Round-3
Round-4
Round-5
100
Mention 5 activities in accounting......
1) gathering information 2) preparing/collecting records 3) summarizing/organizing information 4) preparing reports 5) establishing controls to promote accuracy/honesty
100
OWNER’S EQUITY
The difference between assets and liabilities. Also known as capital or net worth.
100
Business transaction
A financial event that causes a change in financial position.
100
Double entry system
Every transaction is recorded in two steps, first as a debit and second as a credit.
100
The Income Statement
A financial report that shows the revenue of a business, subtracts its expenses, and reveals the profit made for a given period of time.
200
Name accounting designations.....
CA - Chartered Accounts -were dedicated number crunchers who typically worked in public practice, performing corporate and government audits CMA - Certified Managed Accountant -CMAs were the corporate leaders who focused more on business management. CGA - Certified General Accountant - whose part-time, distance-education-style certification program was aimed at working professionals who wanted to advance their career by adding an accounting designation to their resumé. As the only accounting designation that didn’t require trainees to have a university degree when they started the program CPA - CHARTERED PROFESSIONAL ACCOUNTANT
200
FINANCIAL POSITION OF THE BUSINESS
the status of the business as represented by assets, liabilities and owner’s equity.
200
What is source documents?
When an asset, liability or equity item is recorded for accounting purposes, a business paper or document is required to verify the dollar amount. The business paper is called a source document.
200
For what account an increase means debit?
Asset
200
Revenue
An increase in equity resulting from the sale of goods or services in the usual course of the business.
300
Balance sheet
shows the financial position of a business on a particular day. It displays the net worth of the company. The information can be shared with owners, investors, banks, lenders and other interested parties.
300
ACCOUNTS RECIEVABLE
a particular business/or person that owes money to your business (A/R) – also called a debtor
300
Objectivity Principle
It requires that a business's accounting be recorded on the basis of clear, verifiable evidence not on personal feelings or emotions.
300
Purchase on account
If an item is purchased on credit, this means that it is not paid for at the time of purchase and is called purchase on account.
300
Net Revenue/Net Loss
Net income is the difference between the total revenues and total expenses,where the revenues are greater than the expenses. If the expenses are greater than the revenues, the business has suffered a net loss.
400
ASSETS
Things a person owns that are worth money.
400
FUNDAMENTAL ACCOUNTING EQUATION
A-L=OE A=L+OE ($10 - $2 = $8) ($10 = $2 + $8)
400
Ledger
A Ledger is a group or file of accounts.
400
Payment on account
If money is paid out to a creditor to decrease the amount owed, it is a payment on account.
400
Name the four parties to whom The Income statement is a useful tool.
Owners and Mangers Bankers Investors Income tax Authorities
500
LIABILITIES
Amounts owed by the business.
500
Who has a first claim on business assets?
Creditors
500
Debit and Credit Theory
Debit on the left, Credit on the right.
500
Overdraft Protection
A financial contract that allows a deposit account to go below zero.
500
Drawings
The withdrawals of funds by the owner are known as drawings and represent a decrease in equity.