Double Entry Acc

Front 1

Balance Sheet

Back 1

Outline assets and liabilities

Front 2

Is a bank loan an asset or liability?

Back 2

Liability

Front 3

Owner Equity

Back 3

Assets - Liabities

* Not fair market value of business (cost principle)

Front 4

Goods are sold on account to a customer. What type of entry is made to accounts receivable?

Back 4

Debit..

Dr. A/R Cr. Sales

Front 5

General Ledger

Back 5

Summary of business transactions of an account, ex. cash, supplies.

Front 6

When a company is using Double entry accounting, what elements of a given ledger must equal?

Back 6

Debits and Credits must equal in any given ledge, balance.

Front 7

What is double entry accounting?

Back 7

The use of debits and credits.

Front 8

How do you minimize the risk of error?

Back 8

For me it's helpful to create a checklist, and have everything organized including the working space. It's also good to know the task at hand to its full extent, especially at an entry role where you're still new to many things i feel that asking questions will be very helpful at minimizing error.

Front 9

How do you minimize risk of error?

Back 9

Make sure you leave enough time to review your work and check for errors.

Front 10

How do you differentiate between audit and accounting?

Back 10

In accounting we record business transactions through financial statements and in audit we check those financial statement for accuracy

Front 11

Define the 3 types of financial statements

Back 11

1. Balance Sheet: Financial position of company such as liabilitys assets and owner equity.

2. Income statement : Shows profit and loss of a company. (Sales and expenses)

3. Statement of cash flows: Cash activities, operating, investing and financing.

Front 12

What is the purpose of a bank reconsolidation?

Back 12

Comparing bank statement balance with book balance and making sure they match, we investigate the difference and put in the books. A way to record completeness and accuracy, making sure whats recorded in the bank side is recorded in the books side.

Front 13

Can you explain the basic accounting equation?

Back 13

Assets = Liabities + Owner Equity OR what

What we own = What we owe

Front 14

Financial Statements

Back 14

Statements that records business activities and performance. Statement such as income statement Cash flow statement, balance sheet. Investors look at this statements and used for audits.

Front 15

Foot notes

Back 15

Extra information of a companies finances on financial statement

Front 16

Partnership account

Back 16

Contains transactions between the firm and the partner company, capital partnership and share profits.

Front 17

Privacy Equity Fund

Back 17

Maintain corporate books and records, monitor and pay fund expenses, monitor relations between investors and directors.

Front 18

Month End Journal Entries

Back 18

Recurring monthly transactions, transactions such as accrued expenses, amortization, depreciation, and loan interest. The accounting team will reconcile cash accounts and balance sheets.

Front 19

income statement

Back 19

profit or loss statement which is a company's expenses and revenue

Front 20

Profit or Loss statement

Back 20

Income statement

Front 21

Accounts Payable

Back 21

Are in charge of making payments owed by the company to suppliers and other creditors, paying vendor invoices or bills, and recording the company's short-term debts.

Front 22

Account Receivables

Back 22

Ensure their company receives payments for goods and services, and records these transactions accordingly.

Front 23

Owner Equity

Back 23

Assets - Liabities

Front 24

Accounting formula or Asset Formula

Back 24

Assets = Liabities + Owner Equity

Front 25

Net Income

Back 25

Assets - Liabities

Front 26

Gross Profit

Back 26

Sales - Cost of Goods sold

Front 27

Gross profit margin

Back 27

Gross profit / sales

Front 28

Working Capital

Back 28

(Assets - Liabilities) cash, portfolio of financial products, and investments made by the company.

Front 29

Month End Journal Entries

Back 29

Recurring monthly transactions, transactions such as accrued expenses, amortization, depreciation, and loan interest. The accounting team will reconcile cash accounts and balance sheets.

Front 30

Pivot Table

Back 30

its a report table with data and its also used gain data insights that can help with future decisions

Front 31

Vlookup

Back 31

lets you search a table of data

Front 32

Journal Entry

Back 32

It’s the way we record transactions

Front 33

Cash Processing & Bank reconciliation

Back 33

Cash processing we compare the cash count to that in the cash books, bank reconciliation we compare the cash books to the bank statements

Front 34

Account Receivables (Debit or Credit)

Back 34

Always recorded as DEBIT it's an ASSET

Front 35

Revenue (Debit or Credit)

Back 35

Revenue is recorded as a CREDIT because it

increases Owner Equity or Stock holders equity

Front 36

Realized Gains

Back 36

Sell investments at a higher price than what you paid for them, the capital gains are "realized" and you'll owe taxes on the amount of the profit.

Front 37

Are expenses Credits or Debits?

Back 37

Expenses are always DEBITS because it causes owner equity/ stockholder equity to decrease

Front 38

Whats the difference between general accounting and fund accounting?

Back 38

In General Accounting we record the income and expense in the general ledger while in Fund Accounting we use the general ledger but also

investment holdings and capital allocations.

Front 39

Investment holdings

Back 39

refer to the assets that an organization holds as part of its investment portfolio

Front 40

Capital allocation

Back 40

This involves determining the most effective way to invest the organization's capital in order to generate the highest returns and create the most value for stakeholders.

*Investing in new projects

*Aquiring other companies

*Dividends, stock buybacks

Front 41

Dividends

Back 41

Portion of a companys profits paid of to its shareholders

Front 42

Stockbuy backs

Back 42

Companies buys its own share because it believes it's undervalued, shares are retired creating more value for the company.

Front 43

What are fund accountants responsible for?

Back 43

Fund accountants are expected to prepare consolidated accounts and reports for investment funds, stuff such as real estate, debt, or private equity

Front 44

Partnership

Back 44

Overall, a partnership is a type of business organization in which two or more people share ownership of the business and are jointly responsible for its profits and losses. Partnerships must keep accurate records of their financial transactions and prepare financial statements, and are taxed as pass-through entities.

Balance sheets are usually prepared with the cash and equivalents at the beginning, followed by the current and fixed assets and then liabilities.

Front 45

5 basic principles of accounting learned in school

Back 45

Revenue recognition: The period that we will be recognition revenue

Historical cost: Record expenses and assets at its historical cost.

Matching principle: Matching revenue with expenses.

Full disclosure principle (footnotes): Disclosing all information on financial statements

Objectivity: Recording transactions based on evidence

Front 46

What has school taught you?

Back 46

School has provided me with the skill to summarize transactions into financial statements, it taught me double entry accounting ( Debits and credits to record business transactions)

Front 47

Retained Earnings

Back 47

The profits a company has left after paying its direct & indirect costs (incomes taxes / dividends)

Front 48

Common stock

Back 48

Regular stock, shows ownership in a company. Traded in stock market

Front 49

Trial balance

Back 49

Financial report that shows closing balances of the accounts in general ledger