Accounting Terms Flashcards
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Questions and Answers

What is the definition of Asset?

  • credit
  • contra asset
  • liability
  • debit (correct)

    • What is a withdrawal?

    debit

    What is an expense?

    debit

    What is the definition of liability?

    <p>credit</p> Signup and view all the answers

    What is Owner's Equity?

    <p>credit</p> Signup and view all the answers

    What is revenue?

    <p>credit</p> Signup and view all the answers

    What is Accounts Payable?

    <p>liability</p> Signup and view all the answers

    What is Accounts Receivable?

    <p>asset</p> Signup and view all the answers

    What does Accumulated Depreciation refer to?

    <p>contra asset</p> Signup and view all the answers

    What is Advertising Expense?

    <p>expense</p> Signup and view all the answers

    What are Bonds Payable?

    <p>liability</p> Signup and view all the answers

    What is a building in accounting terms?

    <p>asset</p> Signup and view all the answers

    What is cash categorized as?

    <p>asset</p> Signup and view all the answers

    What is common stock classified as?

    <p>equity</p> Signup and view all the answers

    What does Cost of Goods Sold (COGS) refer to?

    <p>expense</p> Signup and view all the answers

    What is Depreciation Expense?

    <p>expense</p> Signup and view all the answers

    What are Dividends classified as?

    <p>contra equity</p> Signup and view all the answers

    What are Dividends Payable?

    <p>liability</p> Signup and view all the answers

    What is Income Tax Expense?

    <p>expense</p> Signup and view all the answers

    What is income tax payable?

    <p>liability</p> Signup and view all the answers

    What is insurance expense?

    <p>expense</p> Signup and view all the answers

    What are intangible assets?

    <p>assets</p> Signup and view all the answers

    What is Interest Expense?

    <p>expense</p> Signup and view all the answers

    What is Interest Revenue?

    <p>revenue</p> Signup and view all the answers

    What is inventory classified as?

    <p>asset</p> Signup and view all the answers

    What is land classified as?

    <p>asset</p> Signup and view all the answers

    What is note payable?

    <p>liability</p> Signup and view all the answers

    What is office equipment classified as?

    <p>asset</p> Signup and view all the answers

    What is preferred stock classified as?

    <p>equity</p> Signup and view all the answers

    What does Property, Plant, and Equipment (PP&E) refer to?

    <p>asset</p> Signup and view all the answers

    What is prepaid insurance?

    <p>asset</p> Signup and view all the answers

    What is prepaid expense?

    <p>asset</p> Signup and view all the answers

    What is Rent Expense?

    <p>expense</p> Signup and view all the answers

    What are retained earnings?

    <p>equity</p> Signup and view all the answers

    What is Salaries Payable?

    <p>liability</p> Signup and view all the answers

    What are sales classified as?

    <p>revenue</p> Signup and view all the answers

    What is sales discount?

    <p>contra revenue</p> Signup and view all the answers

    What are supplies classified as?

    <p>asset</p> Signup and view all the answers

    What is Supplies Expense?

    <p>expense</p> Signup and view all the answers

    What is Treasury Stock?

    <p>contra equity</p> Signup and view all the answers

    What does Unearned Revenue (Deferred Revenue) represent?

    <p>liability</p> Signup and view all the answers

    Study Notes

    Accounting Terms and Definitions

    • Asset: Represents resources owned by a company. Examples include cash, accounts receivable, inventory, and property.
    • Withdrawal: A debit entry that indicates the removal of funds or resources from an account.
    • Expense: A debit entry that reflects costs incurred by the company, such as advertising, salaries, and insurance.
    • Liability: Obligations or debts owed by a company, indicated by credit entries. Examples include accounts payable and bonds payable.
    • Owner's Equity: Represents the owner's interest in the company and is categorized as a credit.
    • Revenue: Income generated from business operations, recorded as a credit, encompassing categories like sales and interest revenue.
    • Accounts Payable: A liability that indicates outstanding payments to suppliers or creditors.
    • Accounts Receivable: An asset that represents money owed to the business by customers.
    • Accumulated Depreciation: A contra asset account that reflects the total depreciation of tangible assets over time.
    • Advertising Expense: A debit entry reflecting the cost associated with promoting the business.
    • Bonds Payable: A type of liability representing a long-term borrowing obligation.
    • Building: An asset that often represents significant value in a company's balance sheet.
    • Cash: An essential asset that indicates available liquidity in the business.
    • Common Stock: Represents ownership in a company, categorized as equity.
    • Cost of Goods Sold (COGS): An expense reflecting the direct costs attributable to the production of goods sold.
    • Depreciation Expense: An expense representing the allocation of a tangible asset's cost over its useful life.
    • Dividends: A contra equity account that reduces retained earnings when distributed to shareholders.
    • Dividends Payable: A liability indicating dividends that have been declared but not yet paid to shareholders.
    • Income Tax Expense: An expense representing the tax liability incurred during a reporting period.
    • Income Tax Payable: A liability that indicates taxes owed to the government.
    • Insurance Expense: Reflects the cost incurred for coverage against potential losses.
    • Intangible Assets: Non-physical assets valued for their potential to generate future revenue.
    • Interest Expense: An expense reflecting the cost of borrowed funds.
    • Interest Revenue: Income earned from interest on investments or loans, categorized as revenue.
    • Inventory: An asset consisting of raw materials, work-in-progress, and finished goods held for sale.
    • Land: An asset that often appreciates over time; does not depreciate.
    • Note Payable: A liability indicating formal borrowing agreements to pay back a sum.
    • Office Equipment: An asset categorized under property that facilitates business operations.
    • Preferred Stock: A type of equity that gives shareholders preferential treatment regarding dividends and assets.
    • Property, Plant, and Equipment (PP&E): A long-term asset category that includes physical assets used in operations.
    • Prepaid Insurance: An asset reflecting future insurance coverage that has been paid for in advance.
    • Prepaid Expense: An asset representing payments made for goods or services to be received in the future.
    • Rent Expense: A debit that reflects the cost incurred for leasing property or equipment.
    • Retained Earnings: Equity that represents cumulative profits retained for business growth instead of distributed as dividends.
    • Salaries Payable: A liability representing salaries that have been earned by employees but not yet paid.
    • Sales: Revenue generated from selling goods or services.
    • Sales Discount: A contra revenue account that reduces total sales revenue due to discounts offered.
    • Supplies: An asset representing materials consumed in the operation of business.
    • Supplies Expense: An expense account that records the cost of supplies used during a period.
    • Treasury Stock: A contra equity account reflecting shares repurchased by the company.
    • Unearned Revenue (Deferred Revenue): A liability indicating payment received before services are rendered or goods delivered.

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    Test your knowledge of essential accounting terms with this flashcard quiz. Each term includes its definition to help reinforce your understanding. Perfect for accounting students or anyone looking to brush up on financial vocabulary.

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