Acc 131

Front 1

This is the ability to pay debts when they are due.

Back 1

LIQUIDITY

HAVING ENOUGH CASH
MAINTAIN BUSINESS OPERATIONS

Front 2

This is the ability to earn an adequate return on an investment. This happens up front.

Back 2

PROFITABLITY

RISK WE TAKE
OUR EFFORTS

Front 3

This is

REVENUES - EXPENSES = NET INCOME

Back 3

INCOME STATEMENT

Front 4

Net income is the mesaure of ---- and ----.

Back 4

PROFITIABLITY

AND EFFICIENCY

Front 5

Profit margin is what divided by what?

Back 5

NET INCOME

REVENUE

Front 6

This is the lest amount of assests generating the greatest amount of revenue.

Back 6

EFFICIENCY

Front 7

Businiess Entity Types

This is unincorporated, one person takes all the risk and gets all the rewards.

Back 7

SOLE PROPIERTORSHIP

Front 8

Busi. Entity Types

This is unincorporated, 2 or more co-owners with a contract.

Back 8

PARTNERSHIP

Front 9

B.E.T.

This is an incorporated business that is organzied under tha law of the particular state. It's owned by stock holders and its represented by shares of stock.

Back 9

CORPORATION

Front 10

This statement is for the users of financial info, measures liquidity and profitiablity. The users are external and internal to the company.

Back 10

FINANCIAL STATEMENT

Front 11

This is a periodic cash payment.

Back 11

DIVIDEND

Front 12

This statement shows change in the balance for a period. Represents the culmulative totale of all profits earned, losses taken and dividends paid out over the life of the company.

Back 12

RETAINED EARNINGS

Front 13

This statements shows financial position in terms of assets,, liability and stockholder equity for a single point in time.

Back 13

BALANCE SHEET

Front 14

This is the source of resources, the creditors are involved. The debts of the company, bank-borrowed money, note payable accounts.

Back 14

LIABILITIES

Front 15

This is the economic rexources. Cash, inventory, land, buliding, equipment.

Back 15

ASSETS

Front 16

This account is the one the investors are involved in. Resources are exchanged for ownership and inventory, services, equipment.

Back 16

STOCKHOLDER'S EQUITY

Front 17

These are rules that guide our accounting practice, it's the guideling for measuring and disclosing business performance.

Back 17

GAAP

Front 18

ASSETS= L +SE

Back 18

175,000 = 162,500 + 112,500

Front 19

Assets are found on what statement?

Back 19

BALANCE SHEET

Front 20

Liabilities are found on what statment?

Back 20

BALANCE SHEET

Front 21

When does a transition occur?

Back 21

RECOGNITION ISSUE

TITLE TO PROPERTY PASSES B/T PARTIES
RISK OF LOSS CHANGES B/T PARTIES

Front 22

What value to place on transaction?

Back 22

VALUATION ISSUE

Front 23

This is an electronic form, manual that lists all accounts, account numbers, descriptions.

Back 23

GENERAL LEDGER

Front 24

DR/CR RULES

For each business transaction, 1 or more accounts are --- and one or more accounts are ----.

Back 24

DEBITED/CREDITED

Front 25

On the trial balance, what is the list of the accounts in order?

Back 25

ASSETS- DR
LIABILITY- CR
S/E- CR
(DIVIDEND- DR)
REVENUE- CR
EXPENSE- DR

Front 26

This priniciple divides a companies activities into artificialy determined time periods. Short period measuremenets useful for stock holders.

Back 26

ACCOUNTING PERIOD ASSUMPTION

Front 27

This principle asks how long will a business last? Absent evdience to contrary. Assumes a business will last a long time.

Back 27

GOING CONCERN ASSUMPTION

Front 28

This principle is the most accurate way to measure business performance. To apply, match the REVENUES of a company to their related EXPENSES in the same acc period.

Back 28

MATCHING PRINCIPLE

WHAT YEAR WAS INCOME RECEIEVED?

2008, WHEN ACTION WAS COMPLETED

Front 29

This principle is driven by the earnings process. To apply, recognize revenue when earned. Whenever there was an action.

Back 29

REVENUE RECOGNITION PRINCIPLE

Front 30

No adjusting journal entry will contain the account ....

Back 30

CASH

Front 31

A contra asses accound is not a liability. But, it is found on what income statement?

Back 31

BALANCE SHEET

Front 32

This is the next to last stop in an accounting cycle. Temporary accounts are closed.

Back 32

CLOSING ENTRIES

Front 33

The 5 basic accounts in a closing entry are

Back 33

REVENUE
EXPENSE
DIVIDEND
INCOME SUMMARY
RETAINED EARNING

Front 34

An income summary is only used in the ---- process.

Back 34

CLOSING

SUMMARIZES ACCOUNT PERIOD REVENUES AND EXPENSES, ALWAYS ENDS WITH A 0 BALANCE

Front 35

In a closing balance, if there is a N/I...

Back 35

DR INCOME SUMMARY
CR RETAINED EARNINGS

Front 36

In a closing balance, if there is N/L...

Back 36

DR RETAINED EARNING
CR INCOME SUMMARY

Front 37

Closing entries accomplish 2 things...

They reduce ...., .... and .... account balances to zero.

Back 37

REVENUE, EXPENSES, DIVIDEND

Front 38

Closing entries accomplish 2 things...

Transfer ---- or ---- to the R/E account.

Back 38

NET INCOME, NET LOSS

Front 39

We use AJE to solve the problem of having ---- and ---- tht may apply to more than one accounting period.

Back 39

REVENUES, EXPENSES

Front 40

AJE'S represent a simple foundation of accrual basis acoounting.

Recognize ---- in the period earned and match it to the ---- in the period used to generate the revenue.

Back 40

REVENUE, EXPENSES

Front 41

Financial statements are prepared each month. Each month represents a separate accounting time period to determine -----.

Back 41

PROFITABILITY

Front 42

If a business eacrned revenue in June, the business must recognize the ---- earned in June.

Back 42

REVENUE

Front 43

Assets are ---- by debit and ---- by credit.

Back 43

INCREASED, DECREASED

Front 44

Liabilities are ---- by debit and ---- by ccredit.

Back 44

DECREASED, INCREASED

Front 45

Stockholder's equity is --- by debit and --- by credit.

Back 45

DECREASED, INCREASED

Front 46

A contra asses accound is not a liability. But, it is found on what income statement?

Back 46

BALANCE SHEET

Front 47

This is the next to last stop in an accounting cycle. Temporary accounts are closed.

Back 47

CLOSING ENTRIES

Front 48

The 5 basic accounts in a closing entry are

Back 48

REVENUE
EXPENSE
DIVIDEND
INCOME SUMMARY
RETAINED EARNING

Front 49

An income summary is only used in the ---- process.

Back 49

CLOSING

SUMMARIZES ACCOUNT PERIOD REVENUES AND EXPENSES, ALWAYS ENDS WITH A 0 BALANCE

Front 50

In a closing balance, if there is a N/I...

Back 50

DR INCOME SUMMARY
CR RETAINED EARNINGS

Front 51

In a closing balance, if there is N/L...

Back 51

DR RETAINED EARNING
CR INCOME SUMMARY

Front 52

Closing entries accomplish 2 things...

They reduce ...., .... and .... account balances to zero.

Back 52

REVENUE, EXPENSES, DIVIDEND

Front 53

Closing entries accomplish 2 things...

Transfer ---- or ---- to the R/E account.

Back 53

NET INCOME, NET LOSS

Front 54

We use AJE to solve the problem of having ---- and ---- tht may apply to more than one accounting period.

Back 54

REVENUES, EXPENSES

Front 55

AJE'S represent a simple foundation of accrual basis acoounting.

Recognize ---- in the period earned and match it to the ---- in the period used to generate the revenue.

Back 55

REVENUE, EXPENSES

Front 56

Financial statements are prepared each month. Each month represents a separate accounting time period to determine -----.

Back 56

PROFITABILITY

Front 57

If a business eacrned revenue in June, the business must recognize the ---- earned in June.

Back 57

REVENUE

Front 58

Assets are ---- by debit and ---- by credit.

Back 58

INCREASED, DECREASED

Front 59

Liabilities are ---- by debit and ---- by ccredit.

Back 59

DECREASED, INCREASED

Front 60

Stockholder's equity is --- by debit and --- by credit.

Back 60

DECREASED, INCREASED

Front 61

Expense accounts are --- by debits and ---- by credits.

Back 61

INCREASES, DECREASED

Front 62

Revenue accounts are ---- by debit and --- by credit.

Back 62

DECREASE, INCREASE

Front 63

Dividends are --- by debit and --- by credit.

Back 63

INCREASE, DECREASE