Accounting

Question 1

Money spent in order to produce income

Answer 1

Expenses

Question 2

Businesses finances are kept separate from the owners personal purchases

Answer 2

Business entity concept

Question 3

Shows our assets, liabilities and net worth ( owners equity)

Answer 3

Balance sheet

Question 4

Revenue- expenses

Answer 4

Net income

Question 5

Must record the actual cost of business purchase as the cost in the books

Answer 5

Cost principle

Question 6

Debts that we owe

Answer 6

Liabilities

Question 7

Assets - Liabilities = owners equity

Answer 7

Accounting equation

Question 8

Reports our income and expenses

Answer 8

Income statement

Question 9

Someone who would look at financial statements to make decisions

Answer 9

Investor

Question 10

System used to keep record of all the money that comes in and goes out of a business

Answer 10

Accounting

Question 11

Money that a company has billed its costumers but has not yet received

Answer 11

Account receivable

Question 12

Accounting year for an organization at the end of which they prepare financial statements

Answer 12

Fiscal year

Question 13

Assets that can quickly be turned into cash

Answer 13

Current asset

Question 14

What are the GAPP Principles

Answer 14

Business entity concept
Time period concept
Consistency Principle
Cost Principle

Question 15

Businesses are required to keep the same reporting methods from year to year

Answer 15

Consistency Principle

Question 16

The accountant uses time periods to benefit financially. Example selling winter supplies in winter.

Answer 16

Time period concept