Fundamentals of Accounting Test 1 – Flashcards
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Countries outside the U.S. use financial accounting standards issued by the:
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IASB
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Which of the following groups of accounts have a normal debit balance?
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A. liabilities and expenses B. assets and expenses C. revenues, liabilities, and capital D. capital and assets
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The type of account and normal balance of Accumulated Depreciation is
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contra asset, credit
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Which of the following accounting steps in the accounting process below would be completed last?
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A. journalizing B. preparing the financial statements C. preparing the adjusted trial balance D. posting
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What is the type of business that is most likely to obtain large amounts of resources by issuing stock?
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Corporation
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Accounts are classified in the ledger...
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in accordance with their appearance in the financial statements
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The debit side of an account
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is the left side of the account
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What does the matching concept state?
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states that the revenues and related expenses should be reported in the same period.
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Which of the following types of accounts have normal credit balance?
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A. assets and liabilities B. capital and drawing C. liabilities and expenses D. revenues and liabilities
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The initials GAAP stand for
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Generally Accepted Accounting Principles
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Some of the more common subsidiary ledgers are:
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Accounts Receivable and Accounts Payable subsidiary ledgers.
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Describe accounting
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Accounting is an information system that provides reports to users regarding economic activities and condition of business.
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Within the U.S., the dominant body in the primary development of accounting principles is the...
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Financial Accounting Standards Board (FASB)
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The debt created by a business when it makes a purchase on account is referred to as an...
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Accounts Payable
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Deferred expenses have...
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not yet been recorded as expenses
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Which episodes of Star Wars features the topic of taxes?
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Episode 1 or 4
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The accounting equation may be expressed as ...
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Assets - Liabilities = Owner's Equity
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When should revenue be recognized?
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When the service is performed
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Which journal is known as an 'all-purpose' journal?
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General Journal
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What are the correct abbreviations of Debit and Credit?
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Debit "Dr", Credit "Cr"
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Debts owed by a business are referred to as...
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liabilities
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Which of the following would not operate as a service business?
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A. lawn care company B. styling salon C. grocers D. pet groomers
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Which side of an account increases a cash amount?
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debit
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Generally accepted accounting principles requires that companies use the _____________ of accounting.
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accrual basis
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