Register New Player - Log In
Welcome to our world of fun trivia quizzes and quiz games:     New Player quiz register Play Now! trivia game
Fun Trivia : Accounting Encyclopedia FunTrivia

Structure

fun facts,factoids,info

Interesting Questions, Facts and Information

  • There are a total of 150 general entries. We are selecting 30 for display.

Special Topics

Interesting Questions, Facts, and Information

    Accounting

    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

      Trial Balance.

    Earnings that a firm realizes in excess of dividends are called what?Financial Accounting

      Retained Earnings.

    Which is an example of an intangible asset?Financial Accounting

      Patent.

    The amount of cash paid in acquiring an asset is called what?Financial Accounting

      Historical Cost.

    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

      Statement of Cash Flows.

    Which financial statement shows the results of the operating activities of a firm for a specific period of time?Financial Accounting

      Income Statement.

    Assets - Liabilities = ____?Financial Accounting

      Shareholder's Equity.

    When revenue is greater than expenses, you have a ___?Financial Accounting

      Net Income.

    These are economic resources with the ability or potential to provide future benefits?Financial Accounting

      Assets.

    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.

    What does the certification CA stand for (in Canada)?Accounting 101 - Bookkeeping

      Chartered Accountant.

    Which kind of accountant would you go to to have prepare your income tax documentation, public or private?Accounting 101 - Bookkeeping

      public. A public accountant opens his business to the public, whereas a private accountant works for a private company.

    Usually, what asset account in a company's ledger is the most liquid?Accounting 101 - Bookkeeping

      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.

    Which form of accounting states that transactions are to be recorded in the period that they occur?Accounting 101 - Bookkeeping

      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.

    When we talk about accounting, what kind of job do we mean?Accounting 101 - Bookkeeping

      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.

    True or False? If a mistake is made in a journal entry, two correcting entries are required to fix it.Accounting 101 - Bookkeeping

      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.

    How do you get the Current Ratio?Accounting 101 - Bookkeeping

      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.

    What kind of balance sheet makes distinctions between current and capital assets?Accounting 101 - Bookkeeping

      Classified.

    True or False? To "debit" an account means to add to it.Accounting 101 - Bookkeeping

      f. Only if the normal balance of the account is debit. If the normal balance of the account is credit, you deduct.

    The abbreviations for debit and credit (Dr. and Cr.) come from what language, and mean what?Accounting 101 - Bookkeeping

      Latin, debere and credere. Accounting has been around for a long time :)

    What does the accounting acronym G.A.A.P. stand for?Accounting 101 - Bookkeeping

      Generally Accepted Accounting Principles . These are the principles that govern the form and format of accounting.

    The act of transferring the information from the General Journal to the General Ledger is called what?Accounting 101 - Bookkeeping

      Posting. You JOURNALIZE an entry from the source, and POST the journal entry to the ledger.

    What is the normal balance for an expense account?Accounting 101 - Bookkeeping

      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).

    The adjustment for amortization is an example of?Accounting #1

      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).

    The proper sequence for the accounting cycle is?Accounting #1

      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.

  • All content is (C)opyright 1995-2006 FunTrivia.com. Content may NOT be copied, reprinted, or distributed without our written consent. Feel free to link to any page you wish.

  • While we try to keep trivia as accurate as possible through a regular volunteer editing process, FunTrivia cannot guarantee the validity of the information found here. FunTrivia offers no professional advice, and you take all responsibility for your use of anything contained herein.
  • Feel free to send a note to a particular item's author for further details or source information; most of our authors love to hear feedback about their work.
  • See our conditions of use for details.