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41 Cards in this Set
- Front
- Back
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The difference between amounts received for customers and the amounts paid for inputs used to provide the goods or services
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Profit
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excess from assets, increase from assets
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Profit
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What are the types of business?
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Manufacturing
Merchandise Service businesses |
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What is accounting?
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an information system that provides reports to stockholders, record info
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an organization in which basic resources are assembled to provide products and services is called
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Business
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What are the type of businesses organization?
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Proprietorship
Partnership Corporation Limited Liability Corporation |
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Most businesses (70%) fall under which type of organization?
Why is it so popular? what is an disadvantage? |
Proprietorship
Popular :low cost and easiness finances are limited to the owners pocket |
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Two or more individuals are joined to start a business, this type is called ...
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Partnership
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... requires a large amount of money, organized by states or federals laws, is a taxable entity and issue shares of stock and has a major influence on the economy
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A Corporation
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Organized as a corporation and may elect to be taxed as a partnership, liability is limited to their investment
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Limited Liability Corporation
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T or F
Most manufacturing businesses are partnerships. |
F: are corporations
bcoz a large amount of resources are needed for manufacturing. Ex. Wal-Mart |
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People/owners who provide finances, who are interested in a potential company creates a ...
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Capital Market
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Stock issued to owners, investment by stockholders, Owners' equity are ...
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Capital Stock
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What is G.A.A.P?
What is F.A.S.B? |
Generally Accepted Accounting Principles
Financial Accounting Standards Board (authority that sets principles) |
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this concept demands that only accounting info relevant to the activities of the business must be recorded
NO PERSONNAL ASSETS/GOODS ARE ADDED |
Business Entity Concept
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reports the value of the market, the exact exchange price for the good is called ... concept
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Cost concept
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Complete the sentence: Prepaid expenses are ... when acquired, but become ... when starting to use
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Assets
Expenses |
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Receivable means
Payable |
not paid in $, but are income
will be paid |
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Income statement tells of...
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Revenue and expense
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what is the Accounting Eq.?
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Assets = Liability + O.E
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T or F
The T accounts tells of debit and credits When doing a T account, we may type in balance or journal entry |
T
F: only entries, NO adding or substracting |
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What is the difference between Cash Basis and Accrual Basis
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Cash basis: income is recorded when receives
Accrual basis: RECOGNIZES income regardless is cash is received or not |
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What is the difference between Expenses and Revenue
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Expenses: recorded when incurred
Revenue: recorded when earned/received |
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What is Journalizing?
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initial recording of transaction
(No balance is recorded) |
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what is Retained Earning?
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accumulated earnings from the summary of changes in earnigs
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a list of the assets, liability and OE is called...
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Balance sheet
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T or F
The sum of the debit doesn't have to be equal to the sum of the credits Left side is always Credits and rigth side is debit in a T account. Debit is always first and credit is indented on the following row |
F
must always equal F: Rigth is always debit, Left is always Credit True: debit is always 1rst row |
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What is CPAs?
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Certified Publics Accountants Exam
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"the sum of the debits is always equal to the some of the credits" is also called
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double entry accounting
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Vertical analysis is
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Comparing each item in a current statement within the same statement as a percent net sale(side by side)
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what are the steps of accounting cycle?
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Journal> Ledger>work sheet> financial statements> journal for adjusting entries> ledger> trial balance
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All fixed assets lose their usefulness except land, this is called
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Depreciation
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Contra accounts are deducted from assets on the balance sheet, the account credited is an ...
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Accumulated Depreciation/ Conta Accounts
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T or F
Service Business provides provides products to customers |
F: provides services
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Which business provides products?
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Merchandising
Manufacturing |
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the amount that is given when product is exchanged from seller to buyer is ... concept
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Cost Concept
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The unit of measure concept is reported in ...
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Dollars (or Money)
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cash flow is related to ...
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cash receipts & cah payments
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a group of account for a business entity is called ...
A list of account in the ... is called... |
Ledger
Ledger... charts of accounts |
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Transferring debits & credits from journal is ...
equality in both side of the accounting posting is the proof called... |
Posting
Trial Balance |
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T or F
Matching concept/principle is when u report revenue and expenses on the same period |
T
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