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Questions and Answers
Match the financial terms with their descriptions:
Match the financial terms with their descriptions:
Expense = Cost related to revenues; debited, results in a decrease in equity. Revenue = Income generated from the sale of goods or services. Drawings = Withdrawals by the owner for personal use. Transaction = An exchange of goods, services, or funds between parties.
Match the financial result with its condition:
Match the financial result with its condition:
Net Loss = Total expenses exceed total revenues. Net Income = Total revenues exceed total expenses. Drawings = Owner withdraws cash for personal use. Exceptional Balance = Account showing an opposite balance
Match the accounting term with its description:
Match the accounting term with its description:
The Ledger = A collection of all the accounts used by a business. T-Account = A simple format used to represent an account in the general ledger. Account Balance = The difference between the total debits and total credits in an account. Fiscal Period = The period of time over which earnings are measured.
Match the financial process with its description:
Match the financial process with its description:
Match the accounting component with its description:
Match the accounting component with its description:
Match the concept with its definition:
Match the concept with its definition:
Match the term to its effect on the accounting equation:
Match the term to its effect on the accounting equation:
Match the definition to the term:
Match the definition to the term:
Match the term to its use:
Match the term to its use:
Match the transaction type with its journal entry impact:
Match the transaction type with its journal entry impact:
Flashcards
Expense
Expense
Cost linked to revenues, shown as a debit, reducing equity.
Net Loss
Net Loss
When a company's expenses are higher than its revenues.
Net Income
Net Income
When revenues exceed expenses.
T-Account
T-Account
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Payment on Account
Payment on Account
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Account Balance
Account Balance
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Fiscal Period
Fiscal Period
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Drawings
Drawings
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Source Documents
Source Documents
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Exceptional Balance
Exceptional Balance
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Study Notes
- Expense: The cost associated with revenues, recorded as a debit, leading to a decrease in equity.
- Net Loss: Occurs when a company's total expenses surpass its total revenues in a specific period, resulting in a negative amount.
- Net Income: The difference between earnings and expenditures, where revenues exceed expenses.
- T-Account: A basic ledger format.
- Payment on Account: Money paid to a creditor, reducing the amount owed.
- Account Balance: The dollar value of an account at a specific time.
- Fiscal Period: The duration over which earnings are measured.
- Drawings: Withdrawals of cash or other assets by the owner for personal use.
- Source Documents: Business papers, like bills or receipts, that provide transaction details.
- Exceptional Balance: When an account displays a balance opposite to its normal balance (e.g., an asset with a credit balance).
- Income Statement: A report prepared annually that details a company's revenues and expenses.
- Transaction: An exchange of goods, services, or funds between two or more parties.
- Revenue: Income generated from the sale of goods or services.
- The Ledger: A collection of all of a company's accounts.
- Receipt on Account: Money received from a debtor, decreasing the amount owed.
- Sale on Account: A sale where payment is not received immediately.
- Purchase on Account: A purchase for which payment is deferred.
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