Financial

Question 1

General lender

Answer 1

Summarizes the debits and credits

Question 2

Purpose of a journal

Answer 2

Other journals
books of original entry
The books

Question 3

General journal

Answer 3

Record, prepaid expenses, doesn’t fit in any journal, correct errors from journal

Question 4

Cash accounting system

Answer 4

Records transaction when cash changes hand

Question 5

Accrual accounting system

Answer 5

Records transaction when incurred or the date of invoice or date of the check

Question 6

Nursing home must use the what system?

Answer 6

Accrual system

Question 7

Bookkeeping process is?

Answer 7

Records all financial transaction

Question 8

General lender

Answer 8

Summarizes debit and credits, organized by GL codes, operating expense and income, organized by vendor name, and GL code

Question 9

Chart of accounting

Answer 9

A listing of all the revenues and expense code so you can code your invoices and find information on the general lender and P&L

Question 10

Accounting process

Answer 10

Reporting financial results

Must produce the profit and loss statement and balance sheet to investors

Question 11

Profit and loss statements
(Income statements)

Answer 11

Operating revenue, ancillary, revenue, operating, expenses, profit, loss

Produce monthly

Question 12

A balance sheet

Answer 12

Assets equals liability plus capital

Question 13

A balance sheet contain?

Answer 13

Net worth, assets, liabilities, capital, financial condition, net worth, and solvency

Question 14

A balance sheet is produced?

Answer 14

Every three months

Question 15

Profit and loss contains?

Answer 15

Profit, income, loss, expenses, revenue

Question 16

Accounting equation

Answer 16

Assets equals liability plus capital

Question 17

Working capital equation

Answer 17

Current assets minus current liability equals working capital

Question 18

Current ratios

Answer 18

Is current assets divided by current liabilities

Question 19

Acid test ratio

Answer 19

Cash plus accounts receivable plus money

The purpose is to calculate your most liquid assets

Question 20

Straight line depreciation

Answer 20

Depreciate evenly each year over the life of the asset

Question 21

Accelerated depreciation

Answer 21

Take the full depreciation amount in the first year

Question 22

Profit and loss statement

Answer 22

PILER

Money made, and income statement

Question 24

Balance sheet

Answer 24

LANCE

Financial well-being

Question 25

GAAP

Answer 25

Generally accepted accounting principles

Question 26

Entity principal

Answer 26

The owner is separate from the company and must disclose all transaction

Question 27

Conservatism principle

Answer 27

Must value your assets at the lowest valuation possible

Question 28

Time period principal

Answer 28

Must use the same calendar or fiscal year from one year to the next

Question 29

Consistency period

Answer 29

Must use the same accounting system from one year to the next

Question 30

Objective evidence principle

Answer 30

Must use the most objective evidence of your income and expenses

Question 31

Source documents

Answer 31

Original document such as cancel checks and invoices, billing statements, etc.

Question 32

Materiality principal

Answer 32

Must record all transaction that are material to the companies financial condition

Question 33

Full disclosure principle

Answer 33

Must fully record and disclose off financial transaction