question

The basic tool of accounting, stated as Assets = Liabilities + Equity

answer

Accounting equation

question

An economic resource that is expected to be of benefit in the future

answer

Asset

question

Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date

answer

Balance sheet

question

Decreases in equity that occur in the course of selling goods or services

answer

Expense

question

Reports on an entity's revenues, expenses, and net income or loss for the period

answer

Income statement

question

Debts that are owed to creditors

answer

Liability

question

Excess of total revenues over total expenses

answer

Net income

question

Excess of total expenses over total revenues

answer

Net loss

question

Increases in equity that occur in the course of selling goods or services

answer

Revenue

question

how cash flows in and out of business

answer

statement of cash flows

question

Report how the company's retained earnings balance changed from the begging to the end of the period.

answer

statement of retained earnings

question

Asset

answer

Equipment

question

Asset

answer

Office Supplies

question

Assest

answer

Truck

question

Asset

answer

Prepaid Rent

question

Asset

answer

Prepaid Insurance

question

Assest

answer

Cash

question

Asset

answer

Notes Receivable

question

Revenues

answer

Which of the following is not reported on the Balance? Sheet?

question

Stockholders' claims to the assets of a business

answer

Equity

question

Income Statement

answer

Which financial statement reports a net income or a net? loss?

question

Income Statement

answer

Which financial statement is normally prepared? first?

question

Provide information useful for making investment and lending decisions

answer

The objective to financial reporting is to

question

Liability

answer

Salaries Payable

question

Assets? = Liabilities? + Equity

answer

The accounting equation is typically shown in which of the following? forms?

question

Net income of $ 3,900

answer

Consider the overall effects on Global Cleaning Service from selling and performing services on account for $6,400 and paying expenses totaling $2,500. What is Global Cleaning? Service's net income or net? loss?

question

financial position on a specific date

answer

The balance sheet reports the

question

. Should we lend money to the? business?

answer

Which of the following would be a question an external decision maker would ask regarding the financial information of a? business?

question

Revenues exceed expenses

answer

Net income occurs when

question

cash decreases

answer

When Smart Touch Learning purchases land for cash

question

-communicates the results to decision makers. -processes the information into reports. -measures business activities.

answer

Accounting is an information system that:

question

asset

answer

An economic resource that is expected to benefit the business in the future is called? an:

question

balance sheet

answer

Which financial statement represents a specific moment in time and not a period of? time?

question

Increase asset (cash) ; Increase equity (common stock)

answer

Sam's Snack Foods received cash from issuance of common stock to stockholders.

question

Decrease liability (accounts payable); Decrease asset (cash)

answer

Paid cash on accounts payable.

question

Increase equity (service revenue); increase asset (accounts receivable)

answer

Performed service for a customer on account.

question

Increase liability (salaries payable); Decrease equity (salaries expense)

answer

Employees worked for the week but will be paid next Tuesday.

question

Increase Asset (cash); Decrease Liability (accounts receivable)

answer

Received cash from a customer on accounts receivable.

question

Decrease asset (cash); Decrease equity (dividends)

answer

Cash dividends paid to stockholders.

question

Is a collection of all the? accounts, the changes in those? accounts, and their balances

answer

A ledger

question

cash is debited and accounts receivable is credited

answer

When Smart Touch Learning receives? $2,000 on account for services already performed

question

A detailed record of all increases and decreases that have occurred in an individual? asset, liability, or equity during a specified period is called? an:

answer

Account

question

Asset

answer

Notes Receivable

question

Asset

answer

Accounts Receivable

question

A list of all ledger accounts and their balance at a point in time is called a

answer

Trial Balance

question

Crediting an account means putting a number on the right side of a? T-Account

answer

Which of the following statements is true regarding? double-entry accounting?

question

Posting

answer

Transferring data from the journal to the ledger is called

question

A journal entry that is characterized by having multiple debits and/or multiple credits

answer

Compound journal entry

question

A record of transactions in date order

answer

Journal

question

Left side of T account

answer

Debit

question

Right Side of T account

answer

Credit

question

Side of account where increases are recorded

answer

Normal Balance

question

List of all accounts with account #

answer

Chart of Accounts

question

payable after it

answer

Liabilites

question

expenses after it

answer

Equity

question

Liability

answer

Unearned Revenue

question

Equity; credit

answer

Common Stock

question

Equity; debit

answer

Dividends

question

Equity; debit

answer

Expenses

question

assets= liabilities+ equity 1. assets 2. liabilities 3. Equity -common stock (c) -dividends (d) -service revenue (c) -expenses (d)

answer

Trail Balance

question

revenues - expenses =net income

answer

Income Balance

question

net income- dividends use minutes sign for dividends

answer

Statement of Retained Earnings

question

divide total liabilities by total assets

answer

Debit Ratio

question

focuses on information for internal decision making

answer

Managerial Accounting

Accounting Test 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards