Accounting Flashcards
0
Q
In ____, Schultz purchased Starbucks. It’s the premier retailer of speciality coffee and there are over _____ stores worldwide
A
1987
20000
1
Q
Provides a needed service for a fee (does something for you)
Give an example
A
Service business
Salon
2
Q
_______ _____ reports info to outside users- investors, potential loan institutions, gov’t, workers, consumers, etc
A
Financial Accounting
3
Q
People are free to produce, sell & buy the goods & services they choose
A
Free enterprise system
4
Q
4 Advantages of a corporation
A
1) Easier to raise money
2) easier to expand
3) easy to transfer ownership
4) losses limited to investment
5
Q
3 disadvantages of a corporation
A
1) complex to organize
2) gov’t regulations
3) higher taxes
6
Q
System where the financial information is recorded by entering it into a computer
A
Computerized accounting system
7
Q
After traveling to ___ CEO Schultz brought home a vision to bring ___ style coffee houses to the US.
A
Italy
Italian
8
Q
A business organization that is recognized as by law to have a life of its own. Separate legal entity. Can have many owners. Ownership is represented by shares of stock. Needs legal permission- a charter
A
Corporation
9
Q
Exists independently of its owner’s personal holdings (can stand on its own)
A
Business entity
10
Q
____ _____ reports to internal users: managers who make day to day decisions which affect the profitability of the organization
A
Management accounting
11
Q
LLC generally have an ____ ____.
It describes how taxes will be treated and what rules will be followed in governing the business
A
Operating agreement
12
Q
Cons of being an entrepreneur
A
1) you will need to work long hours
2) lose the security of a steady paycheck & benefits
3) must market
4) responsible to pay all operating costs
5) must remain motivated
6) face the possibility of losing money
13
Q
Important to society, provides goods and services that individuals need, provides employment & is essential for a strong economy
A
Entrepreneurship
14
Q
A business owned by one person. Oldest and most common form of business organization
A
Sole proprietorship
15
Q
Money supplied by investors, banks or owners of a business
A
Capital
16
Q
4 Disadvantages of a sole proprietorship
A
1) limited expertise
2) difficult to raise capital / money
3) owner assumes all risks
4) hard to attract talented employees
17
Q
3 advantages to a partnership
A
1) easy to set up
2) pooled skills & talents
3) more capital available
18
Q
Legal permission that gives a corporation certain rights & privileges
A
Charter
19
Q
4 Advantages of a sole proprietorship
A
1) easy to set up
2) unlimited profit potential
3) owner has complete control
4) few regulations
20
Q
Flexible form of enterprise. Blends elements of partnership & corporate structures. Provides limited liability to its creditors. Not recognized in all US jurisdictions.
A
Limited Liability Company (LLC)
21
Q
3 advantages of a limited liability company and 1 disadvantage
A
1) limited liability
2) less paperwork
3) flexibility
1) difficult to raise money
22
Q
Pros of being an entrepreneur
A
1) you’re your own boss
2) you create opportunities for earning money
3) you create & control your work schedule
4) you choose the people you serve
5) you select the people who work with you
6) unlimited profit potential; you benefit from the success
23
Q
The purpose of accounting is to provide ____ _____ about a business or a not for profit organization
A
Financial information
24
What are the 6 traits of a successful entrepreneur?
1) self starter
2) creative mind
3) access to capital
4) good communication skills
5) ability to identify a need or solve a problem
6) knowledge or experience in accounting, marketing, & management
25
Buys finished products & resells them to other individuals & businesses
Give an example
Merchandising Business
| Macy's
26
In 1982, ___ ___ joined Starbucks & consisted of _ stores and fewer than ___ employees
Howard Schultz
6
100
27
When a business spends more money than they earn
Loss
28
A business owned by 2 or more persons, called partners, who agree to operate the business as co-owners. Should have a written legal agreement
Partnership
29
Selling directly to the consumer
Retail
30
The amount of money earned over & above the amount spent to keep the business operating
Profit
31
Takes raw materials & turns them into finished products through the use of labor and capital
Give an example
Manufacturing business
| Ford motor company
32
What is an MBA?
Masters of Business Administration
33
A business is expected to continue to be able to survive & operate indefinitely
Going concern
34
System designed to collect, document, and report on financial transactions affecting the business
Accounting system
35
What does GAAP stand for?
Generally accepted accounting principles
36
Individual who transforms ideas for products or services into a business (risk taker)
Entrepreneur
37
A period of time covered by an accounting report (gathering financial info)
Accounting Period
38
Buying a product and reselling it
Wholesale
39
2 disadvantages to a partnership
1) partner conflict
| 2) shared profits
40
The same set of rules all accountants use to prepare their reports
GAAP
41
An establishment formed to provide the goods & services that individuals need / want
Business
42
Summarized information about the financial status of a business
Financial reports
43
Purchase, sale, or exchange of goods or services that causes a change in the assets, liabilities, or owner's equity of the business and the accounting equation. Affects at least _ accounts.
Business transaction
| 2
44
It is the same thing whether you pay with ____ or a ____
Cash
| Check
45
True or false:
| The owner's personal financial transactions are part of the business's records
False
46
A _______ is an economic event that causes a change in assets, liabilities, or owner's equity
Business transaction
47
The amount of money owed, or payable, to the creditors of a business (liability)
Accounts payable (A/P)
48
Anything of value that is owned or controlled (referred to as ASSETS)
Property
49
True or false:
| Both businesses and individuals may own & control property
True
50
When the owner takes cash or other assets from the business for personal use, a ____ occurs
Withdrawal
51
An ____ is any property or item of value owned by a business
Asset
52
The removal of cash or another asset from the business by the owner for personal use. _____ owner's equity
Withdrawal
| Decreases
53
If a business has assets of $5600 and liabilities of $900, the owner's equity is
$4700
54
Amounts owed to creditors; the claims of creditors to the assets of the business
Liabilities
55
The costs of goods and services to operate a business are _____
Expenses
56
Legal right, sometimes with restrictions
Owned
57
Owner's claims to the assets of the business
Owner's equity
58
2nd to the creditor's claim (owner's equity)
Owner's claims
59
_____ is anything of value that is owned or controlled
Property
60
Business or person who sells you a product or service & says you can pay later (liabilities)
Creditor's claims
61
Checks or cash will always affect ____ __ ____
Cash in bank
62
True or false:
| A business transaction affects at least 2 accounts
True
63
_____ are the creditor's claims to the assets of a business
Liabilities
64
Creditors' and owners' financial claims (equities) to the assets of a business
Property rights
65
If the creditor's financial claim to property totals $1000 and the owner's financial claim to property totals $11000, the property value is
$12000
66
What is the accounting equation?
Assets = liabilities + owner's equity
67
An agreement to pay for a purchase at a later time
Credit
68
True or false:
| A person who has control over but does not own an item of property has a legal right to that item
False
69
A person or business that has a claim to the assets of a business; a business or person to which money is owed
Creditor
70
The total amount of money owed to a business (asset)
Accounts receivable (A/R)
71
Give examples of assets
```
Furniture
Cash in bank
Computer
Equipment
Supplies
Car
```
72
What are 2 possible accounts affected when a payment is made on account?
```
Accounts payable (A/P)
Accounts receivable (A/R)
```
73
Property or items of value owned by a business
Assets
74
The owner's claims to the total assets of the business are called _____
Owner's equity
75
Investments will ____ an asset & ____ owner's equity
Increase
| Increase
76
When a business or person buys an item on credit
On account
77
Income earned from the sale of goods & services (company's earnings). _____ owner's equity.
Revenue
| Increases
78
____ refers to the dollar amount of the owner's equity in the business
Capital
79
What are the 3 accounts possibly affected by a credit transaction?
```
Accounts payable (A/P)
Accounts receivable (A/R)
Owner's equity (capital)
```
80
True or false:
One of the purposes of accounting is to provide financial information about property and the rights of a business to that property
True
81
When a payment is made on account, A/R:
| _____ because money owed to you is less. Cash ____ because payment is deposited.
Decreases
| Increases
82
The increases or decreases in a specific item caused by business transactions are recorded in an ____
Account
83
True or false:
| The total financial claims do not have to equal the total cost of the property
False
| Property) must equal liabilities + owner's equity (total financial claims
84
When you sell on account, you will get ___ ___
Paid later
85
The basis for keeping all accounting records in balance
Accounting equation
86
How much business is worth. Only affected when transaction changes owner's investment or claim against the business
Owner's equity (capital)
87
Right to use
Controlled
88
The cost of the goods or services that are used to operate a business (money spent). _____ owner's equity.
Expense
| Decreases
89
Legal rights to an item
Financial claims
90
True or false:
| The increases and decreases caused by business transactions are recorded in specific accounts
True
91
True or false:
| When you buy property on account, you acquire all of its property rights
False
92
Analysis of a transaction:
1) ____ accounts affected- must be at least 2
2) ____ accounts affected- asset? liability? owner's equity?
3) +/- determine amount of ___ or ____. Is the accounting equation still in balance?
Identify
Classify
Increase
Decrease
93
___ is the total amount of money to be received in the future for goods and services sold on credit
Accounts receivable
94
When a payment is made on account, A/P:
| ____ because don't owe as much, cash ____ because payment is made
Decreases
| Decreases
95
True or false:
| The private enterprise system is based on the right to own property
True
96
The total financial claims to the assets of a business are known as ____
Equity
97
When you make a payment on account, you are decreasing your ____ (A/P)
Debt
98
Those assets owned by a business but not used in the operation of the business
Investments
99
Total financial claims to the assets, or property, of a business
Equity
100
When you get a loan, the person lending money to you is a _____. They must be paid off before you
Creditor
101
A person or business that sells property on credit, or any person or business to which money is owed, is called a _____
Creditor
102
True or false:
| An account is a record of only the increase in the balance of a specific item such as cash or equipment
False
103
The amount of money owed to the creditors of a business is ____
Accounts payable
104
When you buy on account, you're incurring a ____
Debt
105
True or false:
| The accounting equation should remain in balance after every transaction
True
106
Subdivision under 3 sections of the accounting equation used to summarize increases and decreases in assets, liabilities, & owner's equity (shows the balance of an item)
Account
107
The ___ is Assets=liabilities + owner's equity
Accounting equation
108
True or false:
| Assets+Liabilities= owner's equity is another way to express the accounting equation
False
109
_____ is income earned from the sale of goods and services
Revenue
110
Buying _____ is the same as buying on credit
On account
111
True or false:
| When a business transaction occurs, the financial position of the business changes
True
112
True or false:
| The owner's claims to the assets of a business are liabilities
False
113
True or false:
The creditor's financial claim minus the owner's financial to an item of property always equals the total cost of the property
False
114
True or false:
| A creditor has a financial claim to the assets of a business
True
115
A list of all accounts used by a business
Chart of accounts
116
A group of accounts (can be manual or electronic)
Ledger
117
Since most companies have many more accounts, we will now record transactions using a ______
Accounts are grouped in a ____ __ ___ known as a ______
T-Account
Chart of Accounts
Ledger
118
Liability accounts are increased on the ___ side (__) and are deceased on the ___ side (__). The normal balance of a liability is on the _____ or _____ side.
```
Credit
Right
Debit
Left
Increase
Credit
```
119
_____ & _____ are on the right side of the accounting equation & the ___ side of the T-Account is the increase side
Liabilities
Owner's equity
Credit
120
Asset accounts start with the # __
Liability accounts start with the # __
Owner's Equity accounts start with the # __
1
2
3
121
Can increase or decrease depending on each individual business transaction
Accounts
122
Owner's Equity (capital) accounts are increased on the ___ side (__) and are deceased on the ___ side (__). The normal balance of an Owner's Equity is on the _____ or _____ side.
```
Credit
Right
Debit
Left
Increase
Credit
```
123
An entry on the left side of an account
Debit
124
Asset accounts are increased on the ___ side (__) and are deceased on the ___ side (__). The normal balance of an asset is on the _____ or _____ side.
```
Debit
Left
Credit
Right
Increase
Debit
```
125
_____ are on the left side of the accounting equation & the ____ side of the T-Account is the increase side
Assets
| Debit
126
All businesses must keep the ______ _____ in balance regardless of the size of the company (must have an equal ___ for every ____ entry)
Accounting equation
Credit
Debit
127
An efficient tool for analyzing double entry accounting transactions. Better way to record a transaction. Shows the $ increase or decrease that is caused by a transaction.
T-Account
128
Always on the side used to record increases to the account
Normal balance
129
Records different sides of business transactions as debits and credits
Double-entry accounting system
130
An entry on the right side of an account
Credit
131
T or F:
| You may have two debits and one credit as long as the amounts are equal
T
132
Assets ____ on the debit side and _____ on the credit side
Increase
| Decrease
133
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit of $650 to rent expense
Left
| Increase
134
T or F:
| Credit means the increase side of an account
F
135
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit to A/R of $2000
Left
| Increase
136
T or F:
| Withdrawals are increased on the debit side
T
137
T or F:
| A credit to an expense account decreases the account balance
T
138
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A credit to A/R of $925
Right
| Decrease
139
T or F:
| Debits decrease the withdrawals account
F
140
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit of $400 to Barns, Withdrawals
Left
| Increase
141
Owner's equity accounts ____ on the credit side and ____ on the debit side
Increase
| Decrease
142
Accounts that are used to record information continuously from one accounting period to the next are called _____
Permanent accounts
143
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A credit to Barns, capital of $1500
Right
| Increase
144
T or F:
| The left side of a T Account is always the debit side
T
145
Collect information for a single accounting period and start each period with a zero balance
Temporary accounts
146
Revenue accounts ___ on the credit side and ___ on the debit side
Increase
| Decrease
147
T or F:
A debit to an expense account and a credit to a capital account will result in the basic accounting equation being out of balance
F
148
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit of $200 to advertising expense
Left
| Increase
149
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit to cash in bank of $750
Left
| Increase
150
T or F:
| Revenue is increased on the credit side
T
151
____ record business income only
Revenue accounts
152
____ are used to record the costs and services used by a business
Expense accounts
153
Income earned from sale of goods or services
Revenue
154
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit of $150 to A/P
Left
| Decrease
155
T or F:
| The normal balance side for a revenue account is the debit side
F
156
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit to office supplies of $40
Left
| Increase
157
An amount of money taken out of the business by the owner is a _____
Withdrawal
158
Owner takes cash or asset out of business for personal use
Withdrawals
159
T or F:
| Capital is always increased by credits
T
160
Are continuous from one accounting period to the next. The dollar balances that end one accounting period become the dollar balances for the beginning of the next
Permanent accounts
161
All temporary accounts will affect _____. Expenses and withdrawals ____ owner's equity; revenue ____ owner's equity
Owner's
Decrease
Increase
162
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A credit of $850 to A/P
Right
| Increase
163
___ are used to record information for only one accounting period
Temporary capital accounts
164
T or F:
| Expenses are decreased on the credit side
T
165
Cost of operating a business (rent, utilities, advertising, etc)
Expenses
166
Liabilities _____ on the credit side and ____ on the debit side
Increase
| Decrease
167
Withdrawals ____ on the debit side and ____ on the credit side
Increase
| Decrease
168
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A credit of $300 to cash in bank
Right
| Decrease
169
What are the 3 temporary accounts? (RED)
Revenue
Expenses
Withdrawals
170
Expense accounts ____ on the debit side & ______ on the credit side
Increase
| Decrease
171
The ___ account shows the amount of the owner's investment, or equity, in a business
Capital
172
Recognizing & recording revenue on the date it is earned even if cash has not been received on that date is known as the ______
Revenue recognition principle
173
Indicate whether the left or right side of the account is affected & if the account balance is increased or decreased:
A debit of $3000 to Barns, Capital
Left
| Decrease
174
Following the GAAP rules, revenue is recorded on the date earned, even if cash has not been received - that is one of the reasons for A/R accounts
Revenue Recognition
175
The ___ ____ side is the increase side
Normal balance
176
T or F:
| The basic accounting equation may be expressed as A=L+OE
T
177
Increases or Decreases capital account:
| Kate Wagner, Withdrawals
Decreases
178
T/F:
| Account names are listed on the work sheet in alphabetical order
F
179
Transferring balances from the trial balance section is called _ the balances
Extending
180
Requires matching expenses with revenue giving a reliable measure of profits or losses
Matching principle
181
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Utilities expense
Debit
182
Preparing the 6-Column Work Sheet:
| 8) __ & __ the income statement & balance sheet sections
Total & rule
183
Income Statement or Balance Sheet Section each balance is extended to:
A/P- Kathleen Rowe
Balance sheet
184
Account name section- in same order as they appear in the general ledger
```
Assets
Liabilities
Owner's Equity
Revenue
Expenses
```
185
T/F:
The work sheet is used to pull together all the information needed to prepare the financial statements & complete the end-of-period activities
T
186
According to the _, expenses are matched against revenue for the same period
Matching principle
187
Increases or Decreases capital account:
| Owner's investment
Increases
188
Preparing the 6-Column Work Sheet:
| 1) enter the ___
Heading
189
Preparing the 6-Column Work Sheet:
| 5) __ the columns in in the income statement & balance sheet sections
Total
190
Debit or Credit Balance in Trial Balance Section of Work Sheet:
A/R- Richard Adzima
Debit
191
The income statement section
Extend revenue & expense balances
192
T/F:
| A double rule across both amount columns of the Trial Balance section means that no more entries will be made
T
193
The amount left after expenses for the period have been subtracted from revenue for the period is _
Net income
194
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Cash in bank
Debit
195
Trial Balance Section list all accounts in the general ledger and their balances
Total debit balances must equal total credit balances
196
When amount of total expenses are more than total revenue and it is labeled in the account name section- it also appears on the balance sheet to show that owner's equity decreases (a __)
Net Loss
| A debit
197
Income Statement or Balance Sheet Section each balance is extended to:
Sales revenue
Income statement
198
T/F:
| A net income for the period is the amount left after the expenses for the period have been subtracted from revenue
T
199
T/F:
| A single rule under a column of amounts means that the amounts are to be added or subtracted
T
200
T/F:
| All liability accounts are listed in the credit column of the Income Statement Section
F
201
T/F:
| Amounts from the trial balance section are first extended to the income statement section
F
202
T/F:
| A work sheet always covers a period of one month
F
203
T/F:
| A ledger account having a zero balance is not listed on the trial balance section of the work sheet
F
204
The _ of the work sheet includes all the general ledger accounts
Trial Balance Section
205
The _ of the worksheet includes all permanent general ledger accounts
Balance sheet section
206
Preparing the 6-Column Work Sheet:
| 6) determine the amount of the net __ or __
Income
| Loss
207
Income Statement or Balance Sheet Section each balance is extended to:
Angel Torres, Withdrawals
Balance sheet
208
T/F:
| The maximum period covered by the accounting cycle is one month
F
209
T/F:
If the debit column of the income statement section is greater than the credit column of the income statement section, there is a net income for the period
F
210
Increases or Decreases capital account:
| Net income
Increases
211
Preparing the 6-Column Work Sheet:
| 2) enter account __, __, & __ for all general ledger accounts
Numbers
Names
Balances
212
T/F:
| All asset accounts are extended to the Balance sheet section
T
213
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Commissions Revenue
Credit
214
T/F:
The work sheet has 4 sections: the heading, the trial balance section, the income statement section, and the balance sheet section
F
215
Preparing the 6-Column Work Sheet:
| 7) enter the amount of the net __ or __ in the appropriate columns in the Income statement and balance sheet sections
Income
| Loss
216
T/F:
| The work sheet is prepared in pen because it is a formal document
F
217
Income Statement or Balance Sheet Section each balance is extended to:
Cash in bank
Balance sheet
218
T/F:
| Account titles are listed on the work sheet in the same order as they appear in the general ledger
T
219
T/F:
| A net loss decreases the balance in the owner's equity account
T
220
A net income is entered in the _ column of the Balance sheet section
Credit
221
Debit or Credit Balance in Trial Balance Section of Work Sheet:
A/P- Lynn Austin
Credit
222
When the income statement debit column total is greater than the income statement credit column total, a(n) _ occurs
Net loss
223
Income Statement or Balance Sheet Section each balance is extended to:
A/R- James Yun
Balance sheet
224
Income Statement or Balance Sheet Section each balance is extended to:
Office Equipment
Balance sheet
225
Increases or Decreases capital account:
| Net loss
Decreases
226
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Office Equipment
Debit
227
Increases or Decreases capital account:
| Admissions revenue
Increases
228
A net income is entered in the _ column of the Income Statement section
Debit
229
Amount of revenue that remains after expenses are subtracted and it is labeled in the account name section- it also appears on the balance sheet to show that capital will increase (a __)
Net Income
| A credit
230
A net income or loss will increase or decrease the _ account
Capital
231
Income Statement or Balance Sheet Section each balance is extended to:
Angel Torres, Capital
Balance sheet
232
A working paper used to collect information from the ledger accounts in one place to prepare the financial statements and to complete other end-of-period activities
Work Sheet
233
Increases or Decreases capital account:
| Rent Expense
Decreases
234
The _ of the work sheet includes only the temporary general ledger accounts
Income Statement Section
235
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Joseph Kwiatek, Capital
Credit
236
A working paper used to collect information from the ledger accounts is a(n) _
Work sheet
237
T/F:
| A net loss for the period is entered in the debit column of the balance sheet section
T
238
Drawing a single line to _ amounts above and drawing a double line indicates that no more ___ will take place
Ruling
Total
Calculations
239
T/F:
Total expenses for the period are reflected in the totals of the credit column of the Income Statement Section & the credit column of the balance sheet section
F
240
T/F:
| Amounts from the trial balance section are first extended to the Balance sheet section
T
241
Increases or Decreases capital account:
| Utilities Expense
Decreases
242
The heading of worksheet
Who
What
When
243
The balance sheet section
Extend assets, liabilities, and owner's equity balances only
244
Debit or Credit Balance in Trial Balance Section of Work Sheet:
Joseph Kwiatek, Withdrawals
Debit
245
T/F:
| The trial balance section will have entries for all accounts in the general ledger including those with zero balances
T
246
The _ explains the who, what, & when of the work sheet
Heading
247
Preparing the 6-Column Work Sheet:
| 3) prove the ___ of the trial balance total debits & total credits
Equality
248
Income Statement or Balance Sheet Section each balance is extended to:
Advertising expense
Income statement
249
Income Statement or Balance Sheet Section each balance is extended to:
Delivery Expense
Income statement
250
Preparing the 6-Column Work Sheet:
| 4) ___ the amounts to the appropriate columns in the __ __ & __ __ sections
Extend
Balance sheet
Income statement
251
Drawing a line under a column of amounts is known as _
Ruling
252
Form you give to your employer so they can withhold the correct federal income tax from your pay
W-4
253
Examples of deductions
Federal income tax, FICA, Medicare tax, state income tax, municipal tax, SUI- unemployment tax, union dues, 401K plan, stock plan, life insurance.
254
Form from employer which summarizes the money you earned and the deductions taken out
W-2
255
When was the first full fledged pension system created?
After Civil War
256
Form you complete for federal income tax to see if you get a refund or owe money. No itemized deductions
1040EZ
257
What does FICA stand for and do? What does the US employment tax do?
Federal Insurance Contributions Act. (Says this on social security checks). Provides a baseline income for: retirees, disabled, children of deceased workers. Employer pays half, employee pays other half.
258
What is the Identity Theft & Assumption Deference Act of 1998?
Felony to use or transfer identity of another
259
5 steps to take if you are a victim of identity theft
1) put fraud alert on credit reports
2) contact institution directly affected
3) contact FTC
4) file a police report
5) protect social security # (contact social security administration, contact IRS)
260
If someone else is using your SSN, what should you do?
Contact SSA Fraud Hotline. Work with credit card companies.
261
Which companies can give you a credit rating?
EQUIFAX
Trans Union
Experian
262
Your salary after you subtract all the deductions
Net pay
263
In 2015, what are the percentages taken out of your paycheck for social security and Medicare? What does your employee do?
Social security: 6.2% up to $118,500. Medicare: 1.45% of with no limit. Employer: matches your amount and total gets added to your account
264
Social security card
First 3 numbers:
Second 2 numbers:
Last 4 numbers:
Represent the geographic area of where you were born
Group number
Serial #
265
When was the Social Security Act created and when did benefits begin? When was Medicare signed into law?
1935
Began in Jan 1937
1965
266
January 31st
March 1st
April 15th
Should have all tax documents
FAFSA form is due
Taxes are due
267
Salary before they take out any deductions
Gross pay
268
YTD
| Money you have earned this year to this paycheck
Year to date
269
At what age can you start to collect the full social security amount?
66
270
Form usually from a bank stating the interests you earned from the year
1099
271
IRA
| money you put aside for retirement
Individual Retirement Account
272
Define Return on assets
Amount of income made from the total average of assets Can use assets to generate income
273
Define inventory turnover
Number of times average inventory is sold during a period
274
Define debt ratio
How much in assets a company needs to sell in order to pay off all liabilities. Ratio of assets financed by debt
275
Define profit margin
Percentage of money a company keeps in earnings from each dollar in sales
276
Define current ratio
How quickly current assets can be turned into cash to pay off short term liabilities
