Finance Vocabulary

The 3 types of general ledger accounts are:

• Assets, Liabilities, and Equity

• Revenue, Expenses, and Profit

• Cash, Inventory, and Receivables

• Debits, Credits, and Balances

What is an asset?

• A resource owned by an individual or entity that is expected to provide future economic benefits.

• A liability that an individual or entity owes to another party.

• An expense incurred by an individual or entity.

• A revenue generated by an individual or entity.

What is a liability?

• An asset owned by a company

• A financial obligation or debt

• A type of income

• A form of equity

What is equity?

• A financial instrument representing ownership in a company

• A type of bond

• A form of debt

• A government policy

What kind of general ledger account is cash?

• Asset

• Liability

• Equity

• Revenue

The three books of record are:

• The Constitution, The Bill of Rights, The Declaration of Independence

• The Book of Kells, The Domesday Book, The Gutenberg Bible

• General Ledger, Cash Disbursement, Cash Receipts

• Equity, liability and asset

The letter that identifies the Capital Fund is:

• F

• D

• A

• H

What is the control account name & number for revenues?

• Revenue Control Account - 4000

• Sales Account - 4500

• Income Account - 5000

• Profit Account - 5500

What is the control account for revenues?

• 123

• 630

• 789

• 980

The control account name & number for expenditures is:

• 630

• 980

• 3000

• 522