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The Accounting Cycle
Financial Statements
Vocabulary
Mathematics
Review
100
The first step in the Accounting Cycle
What is Collect and verify source documents?
100
It is also called a P&L Statement or Profit and Loss Statement.
What is an Income Statement?
100
The block of time covered by an accounting report. It is generally one quarter or one year.
What is an Accounting Period?
100
If ABC Company purchased a truck for $15,000 and paid for half of it in cash, this is the amount of Accounts Payable that would be on the books.
What is $7,500?
100
The 5 C's of Credit.
What are Character, Capacity, Capital, Collateral, and Conditions?
200
The third step in the Accounting Cycle
What is Journalize each transaction?
200
This Financial Statement deals with the actual money that comes into and goes out of the business.
What is the Cash Flow Statement?
200
Assets = Liabilities + Owner's Equity
What is the Accounting Equation?
200
If ABC Company delivered $4000 worth of goods to Steve's Pizza, $3000 worth of goods to Old Town Barbecue, and $2500 worth of goods to Sam's Sub Shop, this is the amount of Accounts Receivable that would be on the books (assuming no cash was received for any delivery).
What is $9,500?
200
Ongoing expenses for operating a business.
What are operating costs?
300
T-accounts (T- charts) are used to complete this step in the Accounting Cycle?
What is Analyze each transaction?
300
This Financial statement is a representation of the Accounting Equation.
What is Balance Sheet?
300
A system of record keeping in which each transaction affects at least two accounts, with one being debited and the other credited.
What is double entry accounting?
300
If ABC Company delivered $600 worth of goods to Old Town Barbecue on November 1st, then delivered $1,000 worth of goods to them on November 4th, then received a payment of $400 from them on November 5th, this will be the amount of Accounts Receivable at the end of November, if no other transactions are recorded.
What is $1200?
300
The three types of capital needed to begin and continue running a business.
What are start up capital, operating capital and reserve capital?
400
When working with T-accounts, an asset account increases on which side?
What is debit?
400
This verb is used to indicate the transfer of amounts from the general journal to individual accounts in the general ledger.
What is Posting?
400
An asset account that represents the total money owed to a business.
What is Accounts Receivable?
400
Angie's Jar Company has $45,000 worth of inventory at the end of 2015. She ordered $25,000 worth of inventory during the year. At the end of 2016, she had $35,000 worth of inventory. This is the Cost of Goods Sold for 2016.
What is $35,000?
400
The three basic parts of a business plan.
What are the strategic plan, marketing plan, and financial plan?
500
The final step of the Accounting Cycle is directly linked to this Financial Statement.
What is the Balance Sheet?
500
The three types of activities that can have income and outflow on the cash flow statement.
What are Operating, Investing, and Financing?
500
A list of all the account names for a business and their current balances. Completed to show that the accounting equation is balanced.
What is a trial balance?
500
ThunderCorp has $70,000 worth of inventory at the end of 2015. During the year, they buy $120,000 worth of inventory. At the end of 2016, they have $20,000 worth of inventory. Their total operating expenses for the year were $140,000. Sales were $500,000. This is their net income.
What is $190,000?
500
One of the types of investments a business might make, this includes the sum of people's skills, health, abilities, knowledge and motivation.
What is Human Capital?