39988221
Description
Flashcards by Susan Esch, updated 10 days ago
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Created by Susan Esch
10 days ago
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| Question | Answer |
| Primary objective of accounting | Is to provide information for decision making. |
| Chart of Accounts | Is a list of accounts and account numbers for a business. |
| Accounts | Are used to record transactions in our accounting system and permit us to sort, organize, summarize, and track information. |
| Subaccounts | Are useful in tracking additional details for accounts, breaking down accounts into types, and roll up into the total for the parent account. |
| Account Name | The name column displays the name assigned to a specific account. |
| Register | Displays more detailed information about accounts and displays all transactions for an account and a running balance. |
| Balance Sheet | Summarizes what a company owns and owes on a particular date. |
| Profit and Loss Statement (also referred to as P&L Statement or Income Statement) | Summarizes the income a company has earned and the expenses incurred to earn the income. |
| Statement of Cash Flows | Summarizes cash inflows and cash outflows for operating, investing, and financing activities of a business. |
| Assets | Are resources that a company owns and are expected to have future benefit. |
| Liabilities | Are amounts a company owes to others and are obligations. |
| External users | Includes bankers, creditors, and investors. |
| Internal users | Include managers and employees of the business. |
| QuickBooks Balance | Is the balance QBO shows in your accounts, and this is based on the transactions and information entered into QBO. |
| Equity accounts (or stockholders’ equity for a corporation) | Represent the net worth of a business and is calculated as assets minus liabilities. |
| Income accounts | Accounts which record sales to customers and other revenues earned by the company. |
| Expense accounts | Accounts which record costs that have expired or been consumed in the process of generating income. |
| Permanent accounts | Balance sheet accounts with balances which are carried forward from year to year. |
| Temporary accounts | Profit and loss accounts which are used to trach account data for a temporary period of time, usually one year. |
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