Accounting

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as

Assets

The generally accepted accounting principles used in the financial statements of U.S corporations are researched and developed by which organization?

Financial Accounting Standards Board (FASB)

In August, a company using the accrual method of accounting sold their services on account (allowed the customer to pay later) . The services were for $2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September: Assuming that the company prepares monthly income statements, what will be the account debited for $2,000 in August?

Accounts Receivable

Which accounting method will result in financial statements that report a more complete picture of a corporation's financial position and a better measure of profitability during a recent accounting year?

Accrual Method

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

Balance Sheet

In August, a company using the accrual method of accounting sold their services on account (allowed the customer to pay later) . The services were for $2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September: In September when the company receives the $2,000 from the customer, which account should the company debit?

Cash

The listing of all of the accounts available for use in a company's accounting system is known as the

Chart of Accounts

A company receives $1,000 of cash as an additional investment in the company by its owner, Mr. Shull. The company's Cash account is increased and Mr. Shull's Capital is increased: Should the $1,000 entry to Mr. Shull's Capital be a Debit or a Credit?

Credit

How do you increase the balance of the Accounts Payable account, a debit or a credit?

Credit

When a company pays a bill, the account Cash will be

Credited

Obligations (amounts owed) are reported on the balance sheet and are referred to as

Liabilities

Does the heading of a balance sheet indicate a period of time or a point in time?

Point in Time

A corporation's net income will cause a change in which component of stockholders' equity?

Retained Earnings

In August, a company using the accrual method of accounting sold their services on account (allowed the customer to pay later) . The services were for $2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September: Which account should the company credit for $2,000 in August?

Service Revenue

Assets minus liabilities equals

Stockholders' Equity

Under the accrual basis of accounting, revenues are reported in the accounting period

When the Corresponding Service Or Goods Have Been Delivered

What will usually cause an asset account to increase?

debit

Revenues minus expenses equals

net income

Accounting entries involve a minimum of how many accounts?

two

How do you increase the balance of the Sales Revenue account, a debit or a credit?

Credit

Generally when revenues are involved in a transaction, a revenue account will be

Credited

A company receives $1,000 of cash as an additional investment in the company by its owner, Mr. Shull. The company's Cash account is increased and Mr. Shull's Capital is increased: Should the $1,000 entry to Cash be a Debit or a Credit?

Debit

How do you increase the balance of the Accounts Receivable account, a debit or a credit?

Debit

How do you increase the balance of the Cash account, a debit or a credit?

Debit

How do you increase the balance of the Supplies Expense account, a debit or a credit?

Debit

Which term is associated with "left" or "left-side"?

Debit

Generally when an expense is involved in a transaction, an expense will be

Debited

When cash is received, the account Cash will be

Debited

Under the accrual basis of accounting, expenses are reported in the accounting period when the

Expense Matches The Revenues Or Is Used Up

Is it true or false that a grocery store's sale of its old delivery van to one of its employees for $2,000 should be recorded in the general ledger account Sales?

False

Assets are usually reported on the balance sheet at which amount?

cost

What will usually cause the liability account Accounts Payable to increase?

credit

Which term is associated with "right" or "right-side"?

credit

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

income statement

Liabilities often have the word _____ in their account title.

payable