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32 Cards in this Set
- Front
- Back
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A corporation is usually MANAGED by |
A professional manager |
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Bringing to get the various items of information to determine or explain a result is |
Summarizing |
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The accounting function of CLASSIFYING is |
Sorting and grouping similar items together |
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A PERSON who reviews and operating in accounting controls procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as a |
Internal auditor |
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Since financial information is COMMUNICATED in accounting terms and is the eyes and ears of management, accounting is said to be |
The language of business |
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EXAMINING a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called |
Analyzing |
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RULES that businesses must follow when preparing financial statements are called |
GAAP |
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A is owned by two or more people who assumes the risk for the business and whose assets may be taken to pay creditors |
Partnership |
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One who assumes all the risk for the business and whose personal assets can be taken to pay creditors is called a |
Sole Proprietor |
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includes preparing various reports and financial statements and analyzing operating investing in financial decisions |
Financial Accounting |
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A business that buys a product from other businesses to sell to Consumers is called a business |
merchandising |
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An example of an expense is |
Supplies consumed |
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The accounting equation may be expressed as |
Owner's equity = assets - liabilities |
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A decrease in owner's equity may result from a |
Withdrawal of cash from the business by the owner |
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Sue Lee paid $1,200 for her employees salaries this transaction would |
Decrease assets and decrease owner's equity |
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Falana received 7,000 in cash from a client for personal service rendered. This transaction would |
Increases assets and increases owner's equity |
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Stephen purchased office supplies for $800 on account. This transaction would |
Increase assets and increase liabilities |
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The financial statement that should be completed first is the |
Income statement |
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The financial statement that shows the state of the firm's assets liabilities and owner's equity on Pacific dates is called a |
Balance sheet |
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Jason purchased office equipment for $4,800 in cash. This transaction would |
Increase one asset and decrease another asset |
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Tyler paid $3700 on account to the company from which equipment was purchased on credit. This transaction would |
Decrease assets and decrease liabilities |
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Meghan started her business by investing 30000 in cash. This transaction would |
Increase assets and increase owner's equity |
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Increase to owner's equity may be from |
Revenue that is derived from sales of goods or service |
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A is a reduction in owner's equity as a result of the owner taking cash or other assets out of the business for personal use |
withdraw |
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The relationship between the three basic accounting elements and, can be expressed in the form of a simple equation known as the accounting equation |
assets, liabilities, owner's equity |
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A is an economic event that has a direct impact on the business |
business transaction |
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represent the decrease in assets (or increase in liabilities) as a result of effort made to educe revenues |
Expenses |
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A is an Unwritten promise to pay a supplier for assets purchased or service received |
account payable |
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Income statement affects what two accounts? |
Revenue and expenses |
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What three accounts affect statement of owner's equity |
Capital, net income, owners drawing |
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What three accounts affect balance sheet |
All Asset, all liabilities, owner's equity (end capital) |
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Purchase equipment on account 4000 |
Account payable on a right equipments on the left |
