Accounting exam review
Journal
A(n) _________________ is often called a book of original entry.
Going concern
Following the ________ accounting assumption, the accountant prepares reports as through the business will operate indefinitely.
Permanent
the dollar balance of a(n) ___________account is carried from the period to the next.
Accounts Receivable
the total amount of money to be received in the future for goods and services sold on credit is the________.
Revenue Recognition
when a business follows the GAAP of_______________, revenue is recorded on the date it is earned
Profit
A business is operating at a(n)_______ if it earns more money than it earns.
Manufacturing business
A business that produces items to sell to individuals and other businesses is known as a(n)___________.
Partnership
A business that two or more people agree to own together is a(n) ______.
sole proprietorship
A business with a single owner is a(n) __________.
Career
A(n) _____is work that is built on a foundation or interest, knowledge, training, and experience.
Source Document
A(n)____________ is an type of business paper that verifies that a transaction occurred.
Normal Balance
an account's ____________is always on the increase side of an account.
Asset
Any property or item of value owned by a business is a(n) ______________.
Accounting equation
"Assets=Liabilities=Owner's Equity" is called the __________.
Skills
A person´s ______ are his or her abilities, such as the ability to think creatively or ot make decisions.
Public Accounting
A(n) ______ firm provides accounting services to clients such as individuals or businesses.
Entrepreneur
A(n) ______ is an individual who transform ideas for products or services into real-world business.
For-profit business
A(n) ______ operates to earn money for its owners.
Not-for-profit organization
A(n) ______ operates to support a cause o ran interest.
Merchandising business
A(n) ________ buys finished goods and sells them to individuals or other business
Corporation
A(n) ________ is a business organization that must get permission from the state to operate.
T account
A(n) _______________ is a tool used to analyze a business transaction's effect on an account.
Fiscal year
A(n) ________________ is an accounting period of twelve months ending on the last day of any month except December.
Calendar year
A(n) _____________________accounting period begins on January 1 and ends on December 31.
Withdrawal
A(n) _______________occurs when the owner takes assets out of the business for personal use.
debit
Amount entered on the left side of an account is the ________________.
Credit
An amount entered on the right side of an account is a(n)________________.
Business transaction
An economic event that causes a change in assets, liabilities, or owner's equity is called a(n)__________.
Journalizing
Another term used for "recording" a business transaction is ________________.
Property
Anything of value that is owned or controlled by an individual or a business is called___________.
loss
If a business spends more money to operate than it earns from the sale of goods or services, it is operating at a(n)____________.
free enterprise system
In a(n)________, people are free to produce the goods and services they choose.
Revenue
Income earned from the sale of goods and services is called_____________.
Revenue
Money a business earns from the sale of goods or services is the ____________.
General Journal
The ______________ is an all-purpose journal used for recording business transactions.
Chart of accounts
The _____________is an "official list of all the accounts used by a business to record its transactions.
Accounting period
The ________is the period of time covered by an accounting report.
Accounting system
The ______is designed to collect, document, and report on the financial transactions affecting the business.
Temporary recognition
The balance of a(n) ____________ account does not carry forward to the next account period.
Expenses
The cost of doing business are known as___________.
Liabilities
The debts of a business are called its __________________.
Capital
The owner's investment in the business is represented by the ________account.
Values
The principles you live by and the beliefs that are important to you are your ________.
Networking
The sharing of information and advice is called ________.
Accounting cycle
The various activities a business completes to organize its accounting records in an orderly fashion is called the __________.
Business entity
Under the ________accounting assumption, a business owner must keep the financial records for the business separate from personal records.
Withdrawal
When an owner takes cash or other assets out of a business for personal use, the transaction is called ______________.
Personality
Your ______ is the set of unique qualities thats makes you different from all other people.
Financial reports
____Summarize information about the financial status of a business.
Personal interest test
_____ can help you identify preferences that will have an impact on your career choice.
Lifestyle
_____ refers to the way a person uses his or her time, energy, and resources.
Accounts payable
_______________is the amount of money owed to a business's creditors.
double-entry accounting
____________requires a debit and a credit for each transaction.
expenses
__________are the prices paid for goods or services used to operate a business.
GAAP
_______are the rules accountants follow when recording and reporting accounting information
Charter
_______is the legal document giving a business the right to operate as a corporation
Financial accounting
______is concerned with preparing reports for external users suchs investors or creditors.
Capital
______is the money invested in a business by its owner(s) or the money provided by banks or investors
Management accounting
_____is concerned with preparing information for internal users.
Service business
a business that provides a needed service for a fee is called a(n)_________.