Accounting

Question 1

The action or process of keeping financial accounts

Answer 1

accounting

Question 2

The steps involved in accounting for all of the business activities during an accounting period

Answer 2

accounting cycle

Question 3

The most fundamental equation of double-entry bookkeeping system, it expresses the relationship between what is owned and what is owed by an entity

Answer 3

accounting equation

Question 4

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit

Answer 4

assets

Question 5

An obligation of an entity arising from past transactions or events

Answer 5

liability

Question 6

owners’ interest in the assets of a business

Answer 6

owner’s equity

Question 7

relating to or being assets that add to the long-term net worth of a corporation

Answer 7

capital

Question 8

listed on the left-hand side or column of an account. It affects the balance in the account by adding to the balance

Answer 8

debit

Question 9

listed on the right-hand side or column of an account. It affects the balance in the account by taking away from it

Answer 9

Credit

Question 10

Income that a company receives from its normal business activities

Answer 10

revenue

Question 11

costs that are matched with revenues

Answer 11

expenses

Question 12

a financial statement that gives operating results for a specific period

Answer 12

income statement

Question 13

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time

Answer 13

balance sheet

Question 14

a financial statement that shows the effect of net income and owner withdrawals on the owner’s interest in the business

Answer 14

statement of owner’s equity

Question 15

financial statement that displays cash inflows and outflows for a period

Answer 15

cash flow statement

Question 16

calculation of elements of the income statement as a percentage of net sales or elements of the balance sheet as a percentage of total assets

Answer 16

vertical analysis

Question 17

calculation of the percentage of change between accounting periods for elements of the income statement or balance sheet

Answer 17

horizontal analysis

Question 18

measures of a businesses ability to pay debts in the short term

Answer 18

liquidity ratios

Question 19

measures a businesses ability to use assets to create a profit

Answer 19

profitability ratios

Question 20

measures a business ability to pay debt in the long term

Answer 20

solvency ratios

Question 21

First Step of the Accounting Cycle

Answer 21

Analyze Transactions

Question 22

Second Step of the Accounting Cycle

Answer 22

Journalize Transactions

Question 23

Third Step of the Accounting Cycle

Answer 23

Post Transactions

Question 24

Fourth Step of the Accounting Cycle

Answer 24

Create a Trial Balance

Question 25

Fifth Step of the Accounting Cycle

Answer 25

Gather Adjusting Entries

Question 26

Sixth Step of the Accounting Cycle

Answer 26

Prepare Financial Statements

Question 27

Seventh Step of the Accounting Cycle

Answer 27

Journalize and Post the Adjusting Entries and the Closing Entries

Question 28

Eighth Step of the Accounting Cycle

Answer 28

Prepare a Post-Closing Trial Balance

Question 29

First 4 steps of the accounting cycle (1-4)

Answer 29

1. Analyze Transactions 2. Journalize Transactions 3. Post Transactions 4. Create a Trial Balance

Question 30

Last 4 steps of the accounting cycle (5-8)

Answer 30

5. Gather Adjusting Entries 6. Prepare Financial Statements 7. Journalize and Post the Adjusting Entries and the Closing Entries 8. Prepare a Post-Closing Trial Balance

Question 31

Accounting Cycle (8 Steps)

Answer 31

1. Analyze Transactions 2. Journalize Transactions 3. Post Transactions 4. Create a Trial Balance 5. Gather Adjusting Entries 6. Prepare Financial Statements 7. Journalize and Post the Adjusting Entries and the Closing Entries 8. Prepare a Post-Closing Trial Balance

Question 32

accounting

Answer 32

The action or process of keeping financial accounts

Question 33

accounting cycle

Answer 33

The steps involved in accounting for all of the business activities during an accounting period

Question 34

accounting equation

Answer 34

The most fundamental equation of double-entry bookkeeping system, it expresses the relationship between what is owned and what is owed by an entity

Question 35

assets

Answer 35

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit

Question 36

liability

Answer 36

An obligation of an entity arising from past transactions or events

Question 37

owner's equity

Answer 37

owners' interest in the assets of a business

Question 38

capital

Answer 38

relating to or being assets that add to the long-term net worth of a corporation

Question 39

debit

Answer 39

listed on the left-hand side or column of an account. It affects the balance in the account by adding to the balance

Question 40

Credit

Answer 40

listed on the right-hand side or column of an account. It affects the balance in the account by taking away from it

Question 41

revenue

Answer 41

Income that a company receives from its normal business activities

Question 42

expenses

Answer 42

costs that are matched with revenues

Question 43

income statement

Answer 43

a financial statement that gives operating results for a specific period

Question 44

balance sheet

Answer 44

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time

Question 45

statement of owner's equity

Answer 45

a financial statement that shows the effect of net income and owner withdrawals on the owner's interest in the business

Question 46

cash flow statement

Answer 46

financial statement that displays cash inflows and outflows for a period

Question 47

vertical analysis

Answer 47

calculation of elements of the income statement as a percentage of net sales or elements of the balance sheet as a percentage of total assets

Question 48

horizontal analysis

Answer 48

calculation of the percentage of change between accounting periods for elements of the income statement or balance sheet

Question 49

liquidity ratios

Answer 49

measures of a businesses ability to pay debts in the short term

Question 50

profitability ratios

Answer 50

measures a businesses ability to use assets to create a profit

Question 51

solvency ratios

Answer 51

measures a business ability to pay debt in the long term

Question 52

Analyze Transactions

Answer 52

First Step of the Accounting Cycle

Question 53

Journalize Transactions

Answer 53

Second Step of the Accounting Cycle

Question 54

Post Transactions

Answer 54

Third Step of the Accounting Cycle

Question 55

Create a Trial Balance

Answer 55

Fourth Step of the Accounting Cycle

Question 56

Gather Adjusting Entries

Answer 56

Fifth Step of the Accounting Cycle

Question 57

Prepare Financial Statements

Answer 57

Sixth Step of the Accounting Cycle

Question 58

Journalize and Post the Adjusting Entries and the Closing Entries

Answer 58

Seventh Step of the Accounting Cycle

Question 59

Prepare a Post-Closing Trial Balance

Answer 59

Eighth Step of the Accounting Cycle

Question 60

1. Analyze Transactions 2. Journalize Transactions 3. Post Transactions 4. Create a Trial Balance

Answer 60

First 4 steps of the accounting cycle (1-4)

Question 61

5. Gather Adjusting Entries 6. Prepare Financial Statements 7. Journalize and Post the Adjusting Entries and the Closing Entries 8. Prepare a Post-Closing Trial Balance

Answer 61

Last 4 steps of the accounting cycle (5-8)

Question 62

1. Analyze Transactions 2. Journalize Transactions 3. Post Transactions 4. Create a Trial Balance 5. Gather Adjusting Entries 6. Prepare Financial Statements 7. Journalize and Post the Adjusting Entries and the Closing Entries 8. Prepare a Post-Closing Trial Balance

Answer 62

Accounting Cycle (8 Steps)