ACCOUNTING CHAPTER 2 REVIEW Powerpoint JEOPARDY! ACCOUNTING CHAPTER 2 REVIEW

Click on the question # Choice1 Choice 2 Choice 3 Choice 4 100 100 100 100 200 200 200 200 300 300 300 300 400 400 400 400 500 500 500 500

Statement of Financial Position Balance Sheet Statement of Financial Position Row 1, Col 1

Income Statement Document showing Revenue & Expenses 1,2

Assets Economic Resources Owned by a business 1,3

Individuals and other enterprises that have a financial interest External Users Individuals and other enterprises that have a financial interest in the reporting company but do not work there everyday 1,4

An investigation of financial statements Audit An investigation of financial statements to determine their fairness with regard to Generally accepted accounting principles. 2,1

Stocks Units of ownership In a corporation 2,2

A person or organization Creditor A person or organization to whom debt is owed. 2,3

2,4 Liabilities Debts or obligations of an entity that resulted from past transactions. 2,4

3,1 Retained Earnings The portion of stockholder’s equity that has accumulated as a result of profitable operations. 3,1

Written promises to pay an amount owed Notes Payable Written promises to pay an amount owed by a certain date with interest. 3,2

organized as a corporation Stockholder’s Equity The owner’s equity of an enterprise, organized as a corporation 3,3

3,4 Statement of Cash Flows An activity statement that explains a company’s change in cash in terms of its operating, investing and financing activities. 3,4

An assumption that a business will operate in the foreseeable future. Going Concern Assumption An assumption that a business will operate in the foreseeable future. 4,1

Increase in the general price level, resulting in a Inflation Increase in the general price level, resulting in a decline in purchasing power. 4,2

Valuation of an asset at the price paid for the asset. Historical Cost Valuation of an asset at the price paid for the asset. 4,3

A category in the statement of cash flows Operating Activities A category in the statement of cash flows that includes the cash effects of all revenues and expenses included in the statement. 4,4

A transaction caused an increase in both assets and owners' equity. Investment of cash in the business by the owner A transaction caused an increase in both assets and owners' equity. 5,1

Adequate Disclosure Financial facts that a reasonable, informed person would consider necessary for the proper interpretation of the financial statements. 5,2

Having the financial ability to pay debts as they become due. Liquidity Having the financial ability to pay debts as they become due. 5,3

management specifically intended to make a Window Dressing  Measurements taken by management specifically intended to make a business look as strong as possible. 5,4