Accounting Basics

Question 1

Process of recording financial transactions pertaining to a business

Answer 1

Accounting

Question 2

Accounting process includes

Answer 2

Analyzing, Recording & Summarizing

Question 3

Father of Accounting

Answer 3

Luca Bartolomeo De Pacioli

Question 4

A/R

Answer 4

Accounts Receivable

Question 5

A/P

Answer 5

Accounts Payable

Question 6

Incoming Money

Answer 6

Debit

Question 7

Outgoing Money

Answer 7

Credit

Question 8

Summary of Debits And Credits

Answer 8

Trial Balance

Question 9

Accounting Period January - December

Answer 9

Calendar Year

Question 10

Accounting Period can start at any month of the year

Answer 10

Fiscal Year

Question 11

Accounting Title money in bank

Answer 11

Cash in bank

Question 12

Accounting Title money on hand

Answer 12

Cash on hand

Question 13

Accounting Equation

Answer 13

Asset = Liability + owner’s equitys

Question 14

To record the initial Capital

Answer 14

Paid up Capital

Question 15

2 types of accounts

Answer 15

Real Accounts
Nominal Accounts

Question 16

It track revenue and expenses for a specific period.

Answer 16

Nominal Account

Question 17

It tracks a company’s assets, liabilities, and equity over its entire lifetime.

Answer 17

Real Account