Accounting

Question 1

Assets

Answer 1

Things company owns & uses to generate revenue.

Question 2

Liabilities

Answer 2

Amount that company owes.

Question 3

Owners Equity

Answer 3

Amount invested in the company by owners; owners claim no assets.

Question 4

Accounting equation

Answer 4

Assets = liabilities + equity

Question 5

4 Rules of debits & credits

Answer 5

1. Debit amount received; credit amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
4. Total debits = total credits

Question 6

Owners Equity Equation

Answer 6

owner’s capital
-owner withdrawals
+revenues
-expenses

Question 7

Assets accounts

Answer 7

cash
land
buildings
equipment
supplies
accounts receivable
notes receivable
prepaid accounts
anything that generates revenue

Question 8

Liability accounts

Answer 8

accounts payable
notes payable
accrued liabilities
unearned revenues

Question 9

Trial balance

Answer 9

total debits = total credits

Question 10

Income statement

Answer 10

Reports revenues less expenses along with resulting net income or loss over time
-list revenues first
-then list expenses.

Question 11

Balance sheet

Answer 11

Reports financial position (types of amounts of assets, liabilities, & equity) at point in time.

Question 12

Assets, expenses, withdrawals

Answer 12

DEBIT

Question 13

Liabilities, revenues, capital

Answer 13

CREDIT

Question 14

Expenses

Answer 14

Outflows or using up of assets as part of operations of a business to generate sales.