Bookkeeping Terms, Accountancy,
Coursera Intro to accounting
(bookkeeping, Bookkeeping Ch 1-6
Journal - correct answer ✔Record of financial transaction from original
documents ( checks, receipts, invoices)
Chart of accounts - correct answer ✔Acts like folders where specific
transactions are placed
Assets - correct answer ✔anything of value owned by a business
Liabilities - correct answer ✔amounts owed by the business
owners equity or capital - correct answer ✔investment of the owners, and
accumulation of profit or losses
Revenue - correct answer ✔the value resulting from sales of goods or
services over a period of time
cost of goods sold - correct answer ✔CGS cost of products sold by the
business
operating expenses - correct answer ✔expensis associated with the
opperatin of a business (lights on, paying saleries)
3 purposes of book keeping - correct answer ✔Record, classify, organize
financial transaction
,debit - correct answer ✔increase in assets decrease in liability
credit - correct answer ✔decrease in assets increase in liability
5 major types of accounts - correct answer ✔assets, liabilities, income,
expense, equity
Sales and Revenue - correct answer ✔Top Line of the income Statement the
money that comes in from customers
profits, earning and income - correct answer ✔Bottom line of the income
statement what is left over from revenue after all the cost and expenses spent
in generating that revenue are subtracted.
Costs - correct answer ✔money spent making a product (materials and
labor)
Expenses - correct answer ✔Money spent to develop it, sell it, account for it
and manage the whole process
Expenditures - correct answer ✔both cost and expenses become______
when money is actually sent to vendors to pay for them.
Orders - correct answer ✔are placed by a customer and do not have any
impact on the financial statement until the products are actually shipped at
that point shipment become sales
,Solvency - correct answer ✔Means having enough money in the bank to pay
your bills
profitability - correct answer ✔sales are greater than your cost and expenses
bookkeepers - correct answer ✔the record and keep track of business
transactions
accounting - correct answer ✔the process of recording classifying and
summarizing economic events through the preperation of finacial statement
Managers - correct answer ✔Users of accounting information that rely on it
to make business decitions
Fiscal year - correct answer ✔Most business owners operate on a calender
yearly basis but some choose to operate on a _______ _______ for reporting
purposes
Proprietorship - correct answer ✔a business with a single owner
Accrual - correct answer ✔A method of accounting based on when the
transaction actually happens, regardless of when cash changes hands
Balance sheet - correct answer ✔The financial statement that recognizes the
finacial postion of a copany at a specific point in time is known as a
Revenue - correct answer ✔the finacial value resulting from the sale of
products or services by a business
, Income statement - correct answer ✔another name for a profit and loss
statement is an
Net Profit - correct answer ✔when a total expense are subtracted from total
revenues that result in a positve number, what remains called
Financial Statements - correct answer ✔Reports prepared by companies that
represent the financial status of their business
Accounts payable - correct answer ✔when a business purchases
merchendice or raw material from supliers on credit the obliagtion to pay for
the purches at some date in the future is recorde as an
Accounts Receivable - correct answer ✔When a business records income
due on sales of products or services that will be collected at some point in the
future it is entered as
profitability - correct answer ✔Accrual accounting matches transactions both
the revenue and the expenses associated with the revenue it enable business
owners to more accuratly keep track of the businesses
corporations - correct answer ✔businesses that are given the right to exist by
an indivdiual state within the us
double entry - correct answer ✔The meathod of bookkeeping that makes
creates two entries for each transaction is known as
current assests - correct answer ✔Assets that can be cpnverted to cash
within the upcomng 12-moth period are know as
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