ACCOUNTING FLASHCARD - I

Front

What's the magic formula in accounting?

Back

Assets = Liabilities + Capital

Front

What does GAAP stand for?

Back

Generally Accepted Accounting Principles

Front

In double-entry bookkeeping, every transaction affects:

Back

Two accounts

Front

What is the main focus of recording in Book-Keeping?

Back

All Business transactions

Front

What is the main goal of accounting?

Back

To record and report financial information

Front

What is the special term for the owner's investment in the business?

Back

Capital

Front

The cost of running a business is called an

Back

Expense

Front

The total amount of money a business owes to others is called

Back

Liability

Front

Which principle suggests that financial statements should be prepared assuming that the business will continue to operate in the future?

Back

Going Concern

Front

Which accounting convention involves using the same accounting principles and methods from period to period?

Back

Consistency