Accounting

Front

What is a Statement of Owner's Equity for a sole proprietorship called for a corporation?

Back

Statement of Retained Earnings.

Front

Financial accounting focuses on ...

Back

Recording and summarizing transactions to prepare financial statements for interested users.

Front

A ledger account

Back

Records the increases and decreases of a specific account (like accounts payable) to calculate its ending balance.

Front

How many basic financial statements are there?

Back

4

Front

The cost principle requires transactions to be recorded...

Back

At the amount actually paid.

Front

A book of original entry where transactions are first recorded.

Back

General Journal

Front

A company purchases $1,200 of merchandise on January 1. On January 5, it returned $200 of merchandise. On January 10, it paid the balance taking a 2% early payment discount. How much was paid for the merchandise?

Back

$980

Front

What kind of account is a purchase discount, which is an expense account increased with a credit?

Back

Contra account

Front

Financial statements are prepared in what order?

Back

Income Statement, Statement of Owner's Equity, Balance Sheet, Statement of Cash Flows.

Front

An account used to record the cost of products sold in a perpetual inventory system is ...

Back

Cost of Goods Sold