ACC 100 Glossary Exam Questions and Answers Latest Update 2024 (Graded A+)
Account - Answers Separate record used to summarize changes in each asset, liability, or capital account of business.
Account Balance - Answers The balance shows the ending amount maintained in an account. This is the diff...
Account - Answers Separate record used to summarize changes in each asset, liability, or capital account
of business.
Account Balance - Answers The balance shows the ending amount maintained in an account. This is the
difference between debits and credits. If the cash account totals $1,000 in debits and $400 in credits at
the end of an accounting period, the difference is $600 which is positive because cash is an asset and
assets hold normal debit balance. T-accounts are useful in figuring out the balance of an account. See
the T-Account Chart in Student Resources Link on course outline page.
Account Form Balance Sheet - Answers This statement is set up (horizontally) side to side with assets on
the left and liabilities and owner's equity on the right. It is a nice format since users can see the balanced
totals side to side. A balance sheet can also be set up to include assets, liabilities and equity vertically
(up and down).
Account Title - Answers Description of account (asset, liability, drawing, capital, revenue, expense).
Accountant - Answers Designs accounting information system and focuses on analyzing and interpreting
information.
Accounting - Answers System of gathering financial information about a business and reporting this
information to users.
Accounting Equation - Answers Three fundamental elements: Assets = Liabilities + Owner's Equity.
Accounts Payable - Answers Unwritten promise to pay a supplier for assets purchased or services
received.
Accounts Receivable - Answers Amount owed to a business by its customers for sale of goods or
services.
Accrual-Based Accounting - Answers There are three types of accounting recording methods: Cash,
accrual, and modified cash. Accrual accounting records revenue and expenses when product or service is
delivered regardless of when cash is received or paid. Extra accounts are necessary when recording
transactions using the accrual accounting method, such as accounts receivable, accounts payable,
prepaid expenses, and long-term assets. Cash accounting records revenue and expenses when received
or paid. The modified cash version is a cash basis of accounting but does allow for special recording of
long-term assets (>1year).
Accumulated Depreciation - Answers The total depreciation cost recorded for an asset offsets (reduces)
the assets original cost amount on the B/S. Acc. Dep is a contra-asset which means it has a normal credit
balance rather than a debit balance. Contra means against. This is how it offsets the corresponding asset
account.
, Adjusting Entries - Answers Journal entries made at the end of an accounting period reflecting changes
in account balances that are not the direct result of an exchange with an outside party.
Analyzing - Answers Looking at events that have taken place and evaluating how they affect the
business.
Asset - Answers Item that is owned by a business and will provide future benefit.
Auditing - Answers Reviewing and testing accounting policies and practices to determine if proper
procedures have been followed.
Balance - Answers Difference between footings of an account.
Balance Sheet - Answers Reports assets, liabilities, and owner's equity on a specific date. Confirms that
the accounting equation is in balance.
Book Value - Answers The difference between the asset account and its related accumulated
depreciation account. The value reflected by the accounting records. (Asset - Accumulated Depreciation
= Book Value)
Bookkeeper - Answers Generally supervises work of accounting clerks, helps with daily accounting work,
and summarized accounting information.
Budgeting - Answers Process which accountants help managers develop a financial plan
Business Entity - Answers Individual, association, or organization engaging in economic activity and
controlling economic resources.
Business Entity Concept - Answers Concept that non-business assets and liabilities are not included in
the business records.
Business Formation - Answers There are three basic structures of ownership formations in business.
These include sole proprietor, partnership, and corporation. A sole proprietorship reports income on
Federal Tax Form 1040 as an individual. Partnerships report income on Form 1065 and split income
according to an agreed upon percentage in the partnership contract. A corporation is taxed at the
corporate level on Form 1120, while the shareholders of the corporation also report income on their
individual returns. This is known as double taxation - an extreme limitation of corporate formation. On
the other side, corporations are protected to the extent of the business. This means that if the company
goes bankrupt, creditors can only pursue assets of the business but cannot touch the shareholder's
personal assets - a popular strength of corporations. A sole proprietor and partnership is not protected
this way. As accountants, we will record transactions for all three types of ownership formations.
Business Transaction - Answers An economic event that has a direct impact on the business. This could
be a purchase, a payment for a purchase, and investment, or so on.
Calendar Year - Answers January 1 through December 31.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
