Where Did The Money Go?

Question 1

What basic accounting formula is the basis of the Balance Sheet?

Answer 1

Assets = Equities

Question 2

The “stuff” a company owns. Anything of value.

Answer 2

Assets

Question 3

Funds that have been supplied to the company to get the “stuff”

Answer 3

Equities

Question 4

If someone other than the owner has claims on the assets, it is called a

Answer 4

Liability

Question 5

Fixed assets are

Answer 5

Things that you wouldn’t want to convert into cash for operating purposes … like your building.

Question 6

If you secure a loan to buy assets you would create a liability. Because this is so common, the basic accounting formula is usually presented as

Answer 6

Assets = Liabilities + Equities

Question 7

Double Entry Accounting

Answer 7

Is a system used to keep track of business activities

Question 8

Debit

Answer 8

Accounting entry with a positive number

Question 9

Credit

Answer 9

Accounting entry with a negative number

Question 10

Debits =

Answer 10

Credits

Question 11

Each type of asset, liability, and equity is called an

Answer 11

Account

Question 12

General Ledger

Answer 12

“Big book” where all the accounts are listed

Question 13

Detail Trial Balance Report

Answer 13

Contains information from the General Ledger

Question 14

Journal

Answer 14

A record of all the transactions in the order in which they occur.

Question 15

Transaction Register

Answer 15

Another name for the Journal

Question 16

To increase an asset account,

Answer 16

Debit it

Question 17

To decrease an asset account,

Answer 17

Credit it

Question 18

To increase a liability or equity account,

Answer 18

Credit it

Question 19

To decrease a liability or equity account,

Answer 19

Debit it