Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Accounting > First Quarter Final Exam > Flashcards

First Quarter Final Exam Flashcards

1
Q

Account

A

A device for recording the changes (increases or decreases) in the fundamental accounting elements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Accountant

A

One who is concerned with the design of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Account Balance

A

The difference between the total debits and the total credits in an account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Accounting

A

A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Accounting Cycle

A

The process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries, and preparing a post closing trial balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Accounting Equation

A

Assets equal liabilities plus Owner’s Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Accounts Payable

A
  • What you owe to creditors
  • An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Accounts Receivable

A
  • What customers owe your company
  • An unwritten promise by a customer to pay, at a later date, for goods sold or services tendered
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Accrual Accounting

A

Recording in each fiscal period applicable expenses, whether pause or not, and income earned, whether collected or not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Adjusted Trial Balance

A

A trial balance taken after adjusting entries have been recorded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Adjusting Entries

A

Entries made at the conclusion of a fiscal period to bring accounts up to date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Assets

A

Property of monetary value owned by a business
Assets= liabilities + capital
- found on Balance Sheet
- Permanent Account
- + on left

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Balance Sheet

A

A formal financial statement illustrating the assets, liabilities, and owner’s equity of a business up to a specific date
Assets= liabilities + owner’s equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Bookkeeper (Information Processor)

A

One who is involved in the process of recording financial information in a prescribed manner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Bookkeeping

A

The recording of financial information in a prescribed manner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Source Documents

A

The first record of a business transaction, such as check stubs, receipts, sales invoices, purchase invoices, cash register tapes, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Capital (Net worth, owners equity)

A

The amount by which the total assets exceed the total liabilities of a business; an owner’s financial interest in a business
- Found of Balance Sheet & Statement of Owner’s Equity
- + on right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Cash

A

Coins, currency (paper money), checks, credit card receipts and money orders received from others, as well as money deposited in the bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Chart of Accounts

A

A LIST of all the account titles and the account numbers assigned to them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Closing Entries

A
  • Zero out temporary accounts for the next accounting period
    Entries made at the end of each reporting period to transfer the balances of the temporary owner’s equity accounts to the permanent owner’s equity account and to reduce the balance in the temporary owner’s equity accounts to ZERO in preparation for the next accounting period
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Compound Journal Entry

A

An accounting entry that involves more than two accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Contra Account

A

An account designed to accumulate totals to offset a related account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Credit

A

The right side of a standard account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Credit Balance

A
  • credits are larger than debits in the account
  • A condition that occurs when the total of the credits in an account is larger than the total of the debits in that account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Debit

A

The left side of a standard account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Debit Balance

A
  • debits are higher than credits in an account
  • A condition that occurs when the total of the debits in an account is larger than the total of the credits in the account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Depreciation

A

The loss of value of a fixed asset due to wear and tear and the passage of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Depreciation Expense

A

the cost of an asset that has been depreciated for a single period, and shows how much of the asset’s value has been used up in that year.

That portion of the original cost of a fixed asset that is assigned as an expense to the reporting period expected to benefit from its use

29
Q

Double Entry Accounting

A

The process of recording dual debits and credits for a single business transaction

30
Q

Drawing Account

A

A separate owners equity account in which withdraws of cash or other assets by the owner for personal use are recorded
- Found on Statement of Owner’s Equity
- Temporary Account
- + on left

31
Q

Expenses

A

A decrease in assets to produce revenues
- Found on Income Statement
- Temporary Account
- + on left

32
Q

General Journal

A

A BOOK OF ORIGINAL ENTRY in which to any business transactions is recorded in chronological order

33
Q

General Ledger

A

The book of accounts

34
Q

Income Statement

A

A formal financial statement which presents the income expenses in resulting net profit or net loss for a given period

Revenue-expenses=income statement

35
Q

Journal

A

Any book of original entry

36
Q

Journalizing

A

The process of recording business transactions in a journal (book of original entry)

37
Q

Ledger

A

A book of accounts in which data from transactions are recorded in journals are posted in thereby summarized

38
Q

Liabilities

A

Any debts that a business owes
- Found on Balance Sheet
- Permanent Account
- + on right

39
Q

Net Loss

A

The difference between gross profit and expenses when expenses are larger

40
Q

Net Income (Net Profit)

A

The difference Between gross profit and expenses when gross profit is larger

41
Q

Original Cost Basis

A

The amount originally paid for a depreciable asset

42
Q

Permanent Accounts

A

Assets
Liabilities
Capital
- Accounts that accumulate information across accounting periods
- All accounts reported on the balance sheet

43
Q

Post Closing Trial Balance

A
  • last step in accounting cycle
  • A Work Paper where all temporary owners equity accounts have been closed and all permanent accounts have been balanced
44
Q

Posting

A

The transferral of data from the journal to the ledger

45
Q

Prepaid Expenses

A

Items which are considered to be assets when acquired, but will become expenses when consumed or expired

46
Q

Revenue (Income)

A

An inflow of assets as a result of selling a product or providing a service
- found on Income Statement
- + on right

47
Q

Salvage Value

A

The estimated value of a fixed asset at the end of its useful life

48
Q

Statement of Owner’s Equity (statement of net worth)

A

A formal financial statement which summarizes all of the changes in owners equity during a specified period of time

49
Q

Straight-Line Depreciation

A

A method in which the depreciable cost basis (original cost basis less salvage value) of an asset is apportioned equally over it’s estimated useful life expressed in terms of months or years

50
Q

T Account

A

A skeleton form of an account used for instructional purposes

51
Q

Temporary owners equity accounts

A

Drawing
Revenue
Expenses
- Accounts utilized to accumulated income expenses and owners withdrawals for one accounting period only

52
Q

Transaction

A

Any activity of a business enterprise that involves the exchange of values

53
Q

Trial balance

A

Making sure debits equal credits on the ledger
- A Work Paper approving the equity of the debit and credit balances in the ledger

54
Q

Useful Life

A

The estimated determinable life of a fixed asset

55
Q

Which accounts have a + on the left

A

Assets
Drawing
Expenses

56
Q

Which accounts have a + on the right

A

Liabilities
Capital
Revenue

57
Q

Owner Invests in business

A
  • Cash: Increase: Debit
  • S. Macon, Capital: Increase: Credit
58
Q

Bought Equipment for Cash

A

Equipment: increase: debit
Cash: decrease: credit

59
Q

Bought Supplies on account

A

Supplies: increase: debit
Accounts Payable: increase: credit

60
Q

Bought equipment paying a down payment with the remainder on account

A

Equipment: increase: debit
Cash: decrease: credit
Accounts Payable: Increase: credit

61
Q

Paid premium for insurance policy

A

Prepaid Insurance: increase: debit
Cash: decrease: credit

62
Q

Paid creditor on account

A

Accounts Payable: decrease: debit
Cash: decrease: credit

63
Q

Sold services for cash

A

Cash: increase: debit
Income/ Revenue: increase: credit

64
Q

Paid rent for month

A

Rent Expense: increase: debit
Cash: decrease: credit

65
Q

Billed customers for services performed

A

Accounts Receivable: increase: debit
Revenue: increase: credit

66
Q

Owner withdrew for personal use

A

S. Macon, Drawing: increase: debit
Cash: decrease: credit

67
Q

Received cash from charge customers to apply on account

A

Cash: increase: debit
Accounts Receivable: decrease: credit

68
Q

Paid wages to employees

A

Wages expense: increase: debit
Cash: decrease: credit

69
Q

What affects owners equity?

A

Capital: Investment by owner +
Drawing: withdraw for personal use -
Net income +
Net loss -

Accounting (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions