Accounting Fundamentals
Credit (CR) means? - ----ANS:credit right
Debit (DR) means? - ----ANS:debit left
Describe a balance statement - ----ANS:describes the financial situation of a
business at a given time. shows the assets, liabilities, and owner's equity
Describe a cash flow - ----ANS:amount of cash going in and out of the
business over a period of time. shows the movement of cash in operating,
investing, and financing activities.
Describe an income statement - ----ANS:how much profit a business earns
over a period of time, shows the amounts for revenue, expenses and net
income or net loss
Describe an statement of owner's equity - ----ANS:describes all changes in
owner's equity over a period of time. shows the amounts for owner's
investments owner withdrawals, net income, and net loss
How do you apply the rule of debit and credit? - ----ANS:Analyzed each
transactions, identify the affected accounts, determine which account increase
or decrease
How do you generate an income statement? - ----ANS:data may be taken from
the ledger or trial balance
How do you record owner's deposit and withdrawal transactions? -
----ANS:Capital Account & Withdrawals Account
In accounting, what are resources categorized as? - ----ANS:Assets,
Liabilities, Owner's Equity
In accounting, what defines a transaction? - ----ANS:the completed sale or
exchange of goods or services, and includes internal and external
transactions.
What are assets? - ----ANS:property or property rights that a business owns
, What are charts of accounts? - ----ANS:a list of all the accounts and their
numbers contained in the ledger.
What are consider "source documents"? - ----ANS:checks, invoice, sales slip,
purchase order, bank statement, employee earnings statement
What are examples of widely used financial statements? - ----ANS:income
statement, statement of owner's equity, balance statement, and statement of
cash flow
What are expenses? - ----ANS:process of gaining revenue, expenses are
incurred
What are financial statements? - ----ANS:documents that concisely
communicate the monetary situation of a business.
What are financial activities? - ----ANS:transactions that affect the owner's
equity and long-term creditors.
What are investing activities? - ----ANS:transactions that affect the assets
What are is the guide to preparing an income statement? - ----ANS:Time
period principle, realization principle, matching principle
What are liabilities? - ----ANS:debts or obligations owned by a business
What are operating activities? - ----ANS:transactions that affect the net
income, or the revenues and expenses
What are revenues? - ----ANS:when goods are sold, or services provided,
revenue is earned
What are T-accounts? - ----ANS:informal tools that are used to quickly show
how accounts are recorded as debit or credits.
What are the five GAAPs? - ----ANS:Business Entity, Cost,
Objectivity,Continuing-Concern, Stable Dollar
Credit (CR) means? - ----ANS:credit right
Debit (DR) means? - ----ANS:debit left
Describe a balance statement - ----ANS:describes the financial situation of a
business at a given time. shows the assets, liabilities, and owner's equity
Describe a cash flow - ----ANS:amount of cash going in and out of the
business over a period of time. shows the movement of cash in operating,
investing, and financing activities.
Describe an income statement - ----ANS:how much profit a business earns
over a period of time, shows the amounts for revenue, expenses and net
income or net loss
Describe an statement of owner's equity - ----ANS:describes all changes in
owner's equity over a period of time. shows the amounts for owner's
investments owner withdrawals, net income, and net loss
How do you apply the rule of debit and credit? - ----ANS:Analyzed each
transactions, identify the affected accounts, determine which account increase
or decrease
How do you generate an income statement? - ----ANS:data may be taken from
the ledger or trial balance
How do you record owner's deposit and withdrawal transactions? -
----ANS:Capital Account & Withdrawals Account
In accounting, what are resources categorized as? - ----ANS:Assets,
Liabilities, Owner's Equity
In accounting, what defines a transaction? - ----ANS:the completed sale or
exchange of goods or services, and includes internal and external
transactions.
What are assets? - ----ANS:property or property rights that a business owns
, What are charts of accounts? - ----ANS:a list of all the accounts and their
numbers contained in the ledger.
What are consider "source documents"? - ----ANS:checks, invoice, sales slip,
purchase order, bank statement, employee earnings statement
What are examples of widely used financial statements? - ----ANS:income
statement, statement of owner's equity, balance statement, and statement of
cash flow
What are expenses? - ----ANS:process of gaining revenue, expenses are
incurred
What are financial statements? - ----ANS:documents that concisely
communicate the monetary situation of a business.
What are financial activities? - ----ANS:transactions that affect the owner's
equity and long-term creditors.
What are investing activities? - ----ANS:transactions that affect the assets
What are is the guide to preparing an income statement? - ----ANS:Time
period principle, realization principle, matching principle
What are liabilities? - ----ANS:debts or obligations owned by a business
What are operating activities? - ----ANS:transactions that affect the net
income, or the revenues and expenses
What are revenues? - ----ANS:when goods are sold, or services provided,
revenue is earned
What are T-accounts? - ----ANS:informal tools that are used to quickly show
how accounts are recorded as debit or credits.
What are the five GAAPs? - ----ANS:Business Entity, Cost,
Objectivity,Continuing-Concern, Stable Dollar
