front 1 Accounting is done in _____ | back 1 Accounts |
front 2 An account is ___ | back 2 a record keeping device |
front 3 How many account types are there? | back 3 5 of them |
front 4 What is the first Account Type | back 4 Asset |
front 5 What is the second Account Type | back 5 Liabilities |
front 6 What is the third Account Type | back 6 Equity |
front 7 What is the fourth Account Type | back 7 Revenues |
front 8 What is the fifth Account Type | back 8 Expenses |
front 9 Definition of Assets | back 9 Companies resources that are expected to provide benefit for the company Examples: Cash, Supplies, Property, Franchises |
front 10 Definition of Liabilities | back 10 Debts and Obligations of a company that must be settled in the future Examples: Accounts Payable, Salaries, Income Tax |
front 11 Definition of Equity | back 11 Net worth of a company after all liabilities have been settled Examples: Dividends, Common Stock |
front 12 Definition of Revenues | back 12 Amounts generated by a company during normal course of business through goods and services Examples: Sales, Service Revenue |
front 13 Definition of Expenses | back 13 Amounts incurred by a business in order to generate revenue Examples: Salaries Expense, Cost of Goods Sold |
front 14 Current Asset: Cash | back 14 provides benefit for future operations |
front 15 Current Assest: Accounts Receivable | back 15 amounts due from customers for the goods sold or services |
front 16 Current Asset: Merchandise Inventory | back 16 most valuable when the inventory is all sold out |
front 17 Current Asset: Prepaid Expenses | back 17 protects and insures company in the future, paying for ads and rent |
front 18 Current Asset: Suppliers | back 18 consumable items used in business, sticky notes, cups |
front 19 Long Term Assets: Property Plant and Equipment (PPE) | back 19 land, equipment, buildsings, furniture, provide a place of business on which to operate |
front 20 Long Term Assets: Intangible assets | back 20 No physical substance, a patent, copyright, |
front 21 Assets provide a future benefit? (T/F) | back 21 True |
front 22 Current Liabilities: Notes Payable | back 22 loan taken out, meant to be repaid in the future, can be long term or current |
front 23 Current Liabilities: Accounts Payable | back 23 amount due to vendors for goods purchased and services enlisted |
front 24 What is a vendor? | back 24 a business from which a company routinely buys goods and services |
front 25 Current Liabilities: Accrued Liabilities | back 25 comprises of all outstanding amounts due to variius individuals and entities for business purposes |
front 26 Current Liabilities: Unearned Revenue | back 26 represents a service that a company is obligated to preform |
front 27 Long Term Liabilities: Bonds Payable | back 27 debt instruments that a company has to repay to a bond investor who buy them |
front 28 True or False: Liabilities represent an obligation to be settled? | back 28 True |
front 29 Equity equates to | back 29 E = Assets - Liabilities |
front 30 Equity also refers to | back 30 Company's net assets or capital |
front 31 Common Stock is | back 31 contirbuted capital or paid in capital by owners and investors |
front 32 Retained Earnings is known as | back 32 earned capital, acquired through business operations. |
front 33 Distributions of a companies earnings back to its owners and investors is called | back 33 Dividends |
front 34 Revenues | back 34 the process where a company records sales |
front 35 Excess cash for reinvestment are recorded in | back 35 INterest Revenue |
front 36 The expense of buying an item is called | back 36 Cost of Goods Sold |
front 37 "Recievable" means | back 37 Asset |
front 38 "Payable" means | back 38 Liablity |
front 39 "Revenue" means | back 39 Revenue, EXCEPT for UNEARNED REVENUE |
front 40 "Expense " means | back 40 Expense |
front 41 Income statement | back 41 reports a company's revenue and expenses. |
front 42 Balance sheet | back 42 records assets liabilities and equity |