Interesting Questions, Facts and Information
- There are a total of 150 general entries. We are selecting 30 for display.
Interesting Questions, Facts, and Information
|What single word can be used to describe the investment that is needed to get a business started? In this context, it is sometimes preceded by the word "seed". ||American Accounting Vocabulary
capital . The phrase "seed capital" is used to describe the initial investment.
|A ____ lists each of the accounts in the general ledger with its balance as of a particular date. What is it?||Financial Accounting
|Which government agency has the authority to set acceptable accounting methods in the U.S.?||Financial Accounting
SEC. The SEC is the Securities Exchange Commission. The FAA is the Federal Aviation Administration, and the EEOC is the Equal Employment Opportunities Commission.
|This statement reports the net cash flows relating to operating, investing, and financing activities for a period of time?||Financial Accounting
|Which financial statement shows the results of the operating activities of a firm for a specific period of time?||Financial Accounting
|These are economic resources with the ability or potential to provide future benefits?||Financial Accounting
|When you have yet to bill a customer for services rendered and have not received the money in the same financial period that the service was performed, then the transaction is recorded as a(n) ________ (assume accrual basis of accounting)?||Accounting 101 - Bookkeeping
accrued revenue. In the cash basis of accounting, the transaction would not be recorded until the next period, when the cash is received.
public. A public accountant opens his business to the public, whereas a private accountant works for a private company.
cash . An account increases in liquidity the easier it is to turn into cash. This is important to know, because on a Classified Balance Sheet, current assets and current liabilities must be recorded in order of decreasing liquidity.
Accrual basis of accounting. The other form is the cash basis of accounting, where revenue is recorded only when cash is received, and expenses are recorded only when cash is paid.
|Which part of the G.A.A.P. is "the assumption that economic events can be identified with a particular unit of accountability"?||Accounting 101 - Bookkeeping
Economic entity assumption. Basically, the economic entity assumption states that a corporation exists as a separate entity from its owner(s) or shareholders.
All of bookkeeping, auditing, consulting, and more. (Bookkeeping and auditing., Bookkeeping and consulting., Bookkeeping only.). Bookkeeping is only a very small part of the accounting process.
f. You can use two entries to fix it, but two are not REQUIRED. The entry can usually be fixed with one entry, or one compound entry.
divide current assets by current liabilities. The Current Ratio tells you how well your business is able to cover its current debts (the ones payable in the next twelve months). It is generally accepted that if your business has a Current Ratio of two or more, you're doing well.
f. Only if the normal balance of the account is debit. If the normal balance of the account is credit, you deduct.
Latin, debere and credere. Accounting has been around for a long time :)
Generally Accepted Accounting Principles . These are the principles that govern the form and format of accounting.
Posting. You JOURNALIZE an entry from the source, and POST the journal entry to the ledger.
Debit. Expenses decrease the owner's capital.
|A $100 petty cash fund has cash of $21 and valid receipts for $80. The journal entry upon replenishment would include a...?||Accounting #1
Credit to Cash Over and Short for $1. The only two times the Petty Cash account would have a journalized transaction are: 1. when initially establishing the Petty Cash fund; and 2. when changing the stipulated amount of the fund (for example, increasing the fund from $100 to $150). (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 301-303).
Apportioning costs between two or more periods. Amortization, also known as Depreciation, is the process of allocating the cost of a capital asset (Property, Plant, and Equipment) to expense over their useful life (service) in a rational and systematic manner. Amortization is a process of cost allocation, not a process of asset valuation. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 419).
Analyze, journalize, post, adjust, prepare statements, close. First, the information is analyzed, then it is journalized in a general journal. Next, the journal entries are posted to the corresponding accounts. Then, any adjustments for the period are made before the financial statements are prepared. The last step is to close all temporary account at/after the end of the the period.
|The duties of receiving cash, recording cash receipts transactions, and having custody of cash should be assigned to a single capable individual. True or false?||Accounting #1
f. When one individual is responsible for all of the related activities, no matter how capable, the potential for errors and fraud is increased. (This is a principle of internal control). (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 294).
|Assets are increased by debits and liabilities are decreased by credits. True or false?||Accounting #1
f. Assets ARE increased by debits, but liabilities are increased by credits, not decreased. In accounting, the terms "debit" and "credit" mean "left" and "right", respectively.