accounting test 1 mcgraw hill
depreciation - ✔️✔️the process of allocating the cost of building, vehicles and
equipment to the accounting period in which they are used. loss on an asset
temporary accounts - ✔️✔️revenue and expense, we close out. accounts that track
financial results for a limited period of time having their balances zeroed out at the end
of each accounting year
permanent account - ✔️✔️assets, liabilities, equity do not close out. accounts that track
financial results from year to year by carrying their ending balances into next year
accounting - ✔️✔️an information system designed by an organization to capture
analyze record and summarize the activities affecting its financial condition and
performance.
sole proprietorship - ✔️✔️owned by 1 - easiest
partnership - ✔️✔️owner by 2 profits are split, have to pay for lawyer
coporation - ✔️✔️separate entity from both legal and accounting perspectives. Buy and
sell stock
assets - ✔️✔️= liabilities + equity
what a company owns - ✔️✔️must equal what a company owes to its creditors and
stock holders
expenses - ✔️✔️are cost of business to help make revenue
revenues - ✔️✔️earned by selling goods or services to customers
liabilities - ✔️✔️something we owe - payable
assets - ✔️✔️presently controlled by the company, measurable value
accounting transaction - ✔️✔️direct and measurable effect on assets liabilities or stock
holders equity
1st step - ✔️✔️post transactions
2nd step - ✔️✔️trial balance
depreciation - ✔️✔️the process of allocating the cost of building, vehicles and
equipment to the accounting period in which they are used. loss on an asset
temporary accounts - ✔️✔️revenue and expense, we close out. accounts that track
financial results for a limited period of time having their balances zeroed out at the end
of each accounting year
permanent account - ✔️✔️assets, liabilities, equity do not close out. accounts that track
financial results from year to year by carrying their ending balances into next year
accounting - ✔️✔️an information system designed by an organization to capture
analyze record and summarize the activities affecting its financial condition and
performance.
sole proprietorship - ✔️✔️owned by 1 - easiest
partnership - ✔️✔️owner by 2 profits are split, have to pay for lawyer
coporation - ✔️✔️separate entity from both legal and accounting perspectives. Buy and
sell stock
assets - ✔️✔️= liabilities + equity
what a company owns - ✔️✔️must equal what a company owes to its creditors and
stock holders
expenses - ✔️✔️are cost of business to help make revenue
revenues - ✔️✔️earned by selling goods or services to customers
liabilities - ✔️✔️something we owe - payable
assets - ✔️✔️presently controlled by the company, measurable value
accounting transaction - ✔️✔️direct and measurable effect on assets liabilities or stock
holders equity
1st step - ✔️✔️post transactions
2nd step - ✔️✔️trial balance
