Accounting 101

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2. US G.A.A.P. stands for Generally Accepted Accounting Principles

True

False

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4. Which is the correct equation on the balance sheet?

Liabilities - Equity = Assets

Assets = Liabilities + Equity

Assets/Liabilities = Equity

Assets = (Liabilities)(Equity)

5. The principle is the amount of money that you have borrowed and do not have to give back

True

False

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8. A tangible asset is something that you can't touch.

True

False

9. Accounts Receivable is when the customer owes you money

True

False

10. Match the following

Accrued Expenses

Matching Principle

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11. Which of the following describes a CPA?

Independent, hired by a company to audit financial statements

Works for a company and audits balance sheets

Independent, hired by a company and accounts for all purchases

Cheapest person alive

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14. Another name for Cost Principle is

Original Cost Principle

Cost at Purchase

Original Price Principle

Historical Cost Principle

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16. Liquidity is the order in which something is expected to be paid

True

False

17. A company is required by law to pay dividends to its shareholders

True

False

18. When doing a journal entry, what is true about credits

Indented

Flush with the margin

Left side of t-chart

Right side of t-chart

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19. Which of the following have the power to form US G.A.A.P.?

S.E.C. (Securities Exchange Committee)

C.P.A. (Certified Practicing Accountant)

I.M.A. (Institute of Management Accounting)

F.A.S.B. (Financial Accounting Standards Board)

I.I.A. (Institute of Internal Auditors)

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20. What are the 2 features of Notes Payable

Signature and payment within 30 days

Signature and intrest

Payment within 30 days and intrest

Signature

21. What is the correct order of the accounting process?

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25. When doing a journal entry, what is true about debits?

Flush with the margin

Indented

Left side of t-chart

Right side of t-chart

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Accounting 101

1. What is the general rule for Revenue?

2.

What first name or nickname would you like us to use?

2. US G.A.A.P. stands for Generally Accepted Accounting Principles

3. What is the general rule for Equity?

4. Which is the correct equation on the balance sheet?

5. The principle is the amount of money that you have borrowed and do not have to give back

6. What is the general rule for an Asset?

7. What is the general rule for Expense?

8. A tangible asset is something that you can't touch.

9. Accounts Receivable is when the customer owes you money

10. Match the following

11. Which of the following describes a CPA?

12. _________ - the idea that if you are in business today, you are expected to be in business indefinetly

13. What is the general rule for a Liability?

14. Another name for Cost Principle is

15. ______ - independent accuracy of financial statements

16. Liquidity is the order in which something is expected to be paid

17. A company is required by law to pay dividends to its shareholders

18. When doing a journal entry, what is true about credits

19. Which of the following have the power to form US G.A.A.P.?

20. What are the 2 features of Notes Payable

21. What is the correct order of the accounting process?

22. What comes out of retained earnings (decreases retained earnings)?

23. _______ - they take into account negative future cash flow

24. ________ - an account that is expected to be payed within 30 days

25. When doing a journal entry, what is true about debits?

26. ____________ - long set of principles, practices, methods of accounting that have gained acceptance in the US

27. What did A.P.B. (Accounting Principle Board) develop?

28. An example of an intangible asset would be

29. ______ - what the item was originally paid for

30. _______ - they effect each other; ex: a number from one statement will match with that number on another statement

31. _______ - when revenue/income is recognized when a service is provided or merchandise is sold

32. _______ - Consists of policies and procedures that are good for the company