Submitted by: Submitted by stevenpa
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Words: 891
Pages: 4
Category: Business and Industry
Date Submitted: 10/02/2011 06:00 PM
1. Understand FASB-Responsible for developing accounting principles.
2. According to FASB what is the objective to financial accounting? To provide external users with information about the finances of that company.
3. Know how various principles act? Matching cost-expenses matched with revenues, Historical cost-original value or purchase price
4. What is the business entity concept? It limits the economic data in the accounting system to be directly related to the activity of the business.
5. Know what assets are and which not an asset is.
6. Assets=Liabilities + Owner’s Equity Find missing piece
7. How accounting equation is affected, what increases, decreases, or stays the same?
8. Which of the following transactions would affect Owner’s Equity? Revenue, Expenses, and Drawing.
9. If I give money to the business how does that affect cash? Increases(debit) Cash, Increases O.E. (credit)
10. Investment of office equipment? Debit, increase equipment. O.E. credit, increase.
11. Which accounts have normal debit balances? Revenue, Expenses, and Drawing
12. Tell Normal balance? Side that increases
13. Journal-The initial record in which the effects of a transaction are recorded.
14. Debit and Credit of transactions.
15. Buys equipment and puts some money down. Debit equipment, credit cash, credit accts. Payable
16. Paid money to a creditor. Debit accts. Rec., credit cash.
17. Owner withdrawals cash. Debit Drawing, Credit cash.
18. Bought a truck and signed a note. Debit equipment, credit notes payable.
19. Purchased supplies on account. Debit supplies, credit accts. Payable
20. Revenue performed on account. Debit accts. Rec., credit fees earned.
21. Describe accrual basis accounting. Revenue report when earned(whether received or not) expenses reported when used ( whether paid or not)
22. Describe aspects of accounting- financial accounting-the branch...