Financial Accounting Terms

Question 1

Accounts Receivable

Answer 1

Revenue | Income Statement | Money owed to you from clients

Question 2

Notes Receivable

Answer 2

Revenue | Income Statement | Future payments from client/customer

Question 3

Accounts Payable

Answer 3

Liability | Balance Sheet | Money you owe to suppliers

Question 4

Notes Payable

Answer 4

Liability | Balance Sheet | Obligation(s) you have to pay someone else (e.g. a loan)

Question 5

Advertising Expense

Answer 5

Expense | Income Statement | Money spent on advertising

Question 6

Bank Fees

Answer 6

Expense | Income Statement | Payments to banks for services and transactions

Question 7

Bond Payment

Answer 7

Liability | Balance Sheet | Obligation to long-term debt (bond + interest) payments

Question 8

Building

Answer 8

Asset | Balance Sheet | Asset used to conduct business

Question 9

Cash

Answer 9

Asset | Balance Sheet | Liquid money available to spend

Question 10

Comission Expense

Answer 10

Expense | Income Statement | Compensation paid to employees/sales reps

Question 11

Common Stock

Answer 11

Equity | Equity Statement | Equity ownership of a business

Question 12

Cost of Goods Sold

Answer 12

Expense | Income Statement | Costs for production and sale of product(s)

Question 13

Deferred Revenue

Answer 13

Asset | Balance Sheet | Upfront payments for goods/services

Question 14

Depreciation Expense

Answer 14

Expense | Income Statement | A decline in the value of assests over time

Question 15

Dividends

Answer 15

Dividend | Equity Statement | Money paid to shareholders regualrly

Question 16

Dividends Payable

Answer 16

Liability | Balance Sheet | Authorized dividends you owe shareholders

Question 17

Entertainement Expense

Answer 17

Expense | Income Statement | Costs for fun, morale, recreation, etc.

Question 18

Equipment

Answer 18

Asset | Balance Sheet | Assests you owe that help get the job done

Question 19

Income Tax Payable

Answer 19

Liability | Balance Sheet | Income tax you owe, but have yet to pay

Question 20

Insurance Expense

Answer 20

Expense | Income Statement | Cost of insurance contracts

Question 21

Prepaid Expense

Answer 21

Asset | Balance Sheet | Upfront insurance payments for coverage for set amount of time

Question 22

Preferred Stock

Answer 22

Equity | Equity Statement | Pays specific dividends to shareholders and has priority over common stock

Question 23

Intangible Asset

Answer 23

Asset | Balance Sheet | Not a physical resource: Intellectual property, goodwill, brand recognition, licenses, copyrights, patents, trademarks, etc.

Question 24

Interest Expense

Answer 24

Expense | Income Statement | Money you owe on borrowed funds

Question 25

Interest Payable

Answer 25

Liability | Balance Sheet | Amount of interest you still owe and have not paid

Question 26

Interest Revenue

Answer 26

Revenue | Income Statement | $$ from investments, bonds, loans, savings accounts, etc.

Question 27

Interest Receivable

Answer 27

Revenue | Income Statement | $$ you earned from interest, but have not been received.

Question 28

Inventory

Answer 28

Asset | Balance Sheet | The amount of stuff a company has to sell

Question 29

Investments

Answer 29

Asset | Balance Sheet | Financial assets holdings (stocks, bonds, real estate, etc.) to get mo' $$$

Question 30

Land

Answer 30

Asset | Balance Sheet | Long-term asset. Real property

Question 31

Lease Expense

Answer 31

Expense | Income Statement | Money you pay for operating an asset without outright ownership

Question 32

Mortgage

Answer 32

Liability | Balance Sheet | Long-term debt used to purchase real estate

Question 33

Marketable Securities

Answer 33

Asset | Balance Sheet | Easily bough and traded assets (stocks, bonds mutual funds)

Question 34

Patent

Answer 34

Asset | Balance Sheet |The right to produce, use, & sell an invention or process

Question 35

Rent Expense

Answer 35

Expense | Income Statement | The amount of rent you pay

Question 36

Prepaid Rent

Answer 36

Asset | Balance Sheet | Upfront payment of rent

Question 37

Rental Revenue

Answer 37

Revenue | Income Statement | $$ you get from renters

Question 38

Research Expense

Answer 38

Expense | Income Statement | Cost to develop/ imporve your business/products

Question 39

Retained Earnings

Answer 39

Equity | Equity Statement |$$ left over for you after paying dividends to the masses

Question 40

Salaries Expense

Answer 40

Expense | Income Statement | Costs of the salaries/wages

Question 41

Salaries Payable

Answer 41

Liability | Balance Sheet | The $$ owed to employees, but not payed yet

Question 42

Sales Revenue

Answer 42

Revenue | Income Statement | $$ you get from sales

Question 43

Selling Expense

Answer 43

Expense | Income Statement | Costs of selling your products & services

Question 44

Service Revenue

Answer 44

Revenue | Income Statement | $$ you get for the services provided to customers

Question 45

Supplies

Answer 45

Asset | Balance Sheet | The stuff needed to get the job done

Question 46

Supplies Expense

Answer 46

Expense | Income Statement | Cost of the stuff needed to get the job done

Question 47

Telephone Expense

Answer 47

Expense | Income Statement | Cost of celluar, landline, and fax lines

Question 48

Utilities Expense

Answer 48

Expense | Income Statement | Cost of utilities

Question 49

Utilities Payable

Answer 49

Liability | Balance Sheet | Amount you owe on utilities

Question 50

Wage Expense

Answer 50

Expense | Income Statement | Cost of comp for hourly employees

Question 51

Wages Payable

Answer 51

Liability | Balance Sheet | Amount owed to hourly employees, but not yet paid