41 Questions
What is the name of the new category created on the right side of the scorecard?
Notes Payable
What is the heading for the left side of the scorecard?
Assets
What is the label for the top part of the right side of the scorecard?
Liabilities
What is the label for the lower right side of the scorecard?
Owner's Equity
What is the total cost of production for making 50 glasses of lemonade?
$10
What is the cost per glass of lemonade?
20 cents
How much profit did the lemonade stand make on the first day?
$15
What is the gross profit (earnings so far) for the lemonade stand?
$15
What is the name of the business that almost every kid tries at least once in their life?
The Lemonade Stand
What is the purpose of The Accounting Game?
To learn what you need to know about the language of business, which goes by the name of Accounting
In the passage, what is described as the most important goal in the world for a kid?
Saving up enough of your own money for a bike or a piece of sports equipment or horseback-riding lessons
What is the basic accounting equation?
Assets = Liabilities + Owner’s Equity
What are some examples of expenses in running a lemonade stand?
Glass rental, advertising, and rent
What do expenses reduce?
Earnings
How can you pay off the IOU owed to Mom and Dad?
By using cash
What is the equation for the balance sheet?
Assets = Liabilities + Owner’s Equity
What does a snapshot in accounting represent?
A moment in time of a business's financial position
What is inventory in accounting?
The raw materials, goods in process, and finished goods that a business plans to sell
Did the exchange of cash for inventory change the total assets?
No
What does the author suggest about the protagonist's mindset at the beginning of the text?
The protagonist feels creative, curious, and excited, and believes their success in life is assured.
What are some details that contribute to the positive atmosphere described in the text?
The warm weather, blue sky, white clouds, laughter of kids, buzzing lawnmowers, chirping birds, fresh cut grass, and scent of flowers.
What items does the protagonist use to build their lemonade stand?
Two wooden fruit crates, old cans of paint and brushes, a hammer, and some nails.
How does the protagonist keep track of the money in their business?
They create a scorecard that shows what they have and who owns it.
What is the purpose of a balance sheet?
The purpose of a balance sheet is to connect things to people. It shows the things a business has and connects them to the people who own or have a claim on those things.
What does the left side of a balance sheet represent?
The left side of a balance sheet represents assets, which can be thought of as THINGS AND STUFF.
What does the right side of a balance sheet represent?
The right side of a balance sheet represents liabilities and owner's equity. Liabilities represent the people the business owes money to, and owner's equity represents what the owner of the business owns.
What is the purpose of a balance sheet in accounting?
The purpose of a balance sheet is to connect things to people, showing the things a business has and connecting them to the people who own or have a claim on those things.
What does the left side of a balance sheet represent?
The left side of a balance sheet represents the assets of a business, which can be thought of as "things and stuff".
What does the right side of a balance sheet represent?
The right side of a balance sheet represents the liabilities (people the business owes money to) and owner's equity (what the owner of the business owns).
How often is a balance sheet typically filled out in accounting?
The frequency of filling out a balance sheet varies from business to business. Banks often do it on a daily basis, while other businesses may do it weekly, monthly, quarterly, or yearly.
What is considered the basic accounting cycle?
A year is considered the basic accounting cycle.
What is another name for assets on a balance sheet?
Assets can be thought of as "things and stuff".
What is another name for liabilities on a balance sheet?
Liabilities represent the people a business owes money to.
What is another name for owner's equity on a balance sheet?
Owner's equity represents what the owner of the business owns.
What is the purpose of a balance sheet in accounting?
The purpose of a balance sheet is to connect things to people, showing the things a business has and connecting them to the people who own or have a claim on those things.
What is the basic accounting cycle?
The basic accounting cycle is considered to be a year.
What is the purpose of a balance sheet in accounting?
The purpose of a balance sheet is to connect things to people. It shows you the things you have in your business and connects them to the people who own or have a claim on those things.
What are the two main categories on a balance sheet?
The two main categories on a balance sheet are Assets and Liabilities + Owner's Equity.
What does the left side of a balance sheet represent?
The left side of a balance sheet represents Assets, or "THINGS AND STUFF" in kid-friendly terms.
What does the right side of a balance sheet represent?
The right side of a balance sheet represents Liabilities and Owner's Equity, or "PEOPLE" in kid-friendly terms.
How often is a balance sheet typically filled out in accounting?
The frequency of filling out a balance sheet varies from business to business, but it can be done daily, weekly, monthly, quarterly, or yearly.
Test your knowledge of basic accounting principles with this quiz. Learn about the fundamental rule of accounting and understand how assets, liabilities, and owner's equity are connected. Challenge yourself to answer questions about earning and ownership, and see how your scorecard changes. Get ready to take a mental snapshot of your lemonade stand success and see if you can make a profit!
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