1. ACCOUNTING CHAPTER 2 REVIEW
Powerpoint JEOPARDY!
ACCOUNTING
CHAPTER 2 REVIEW

2. Click on the question #
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3. Statement of Financial Position
Balance Sheet
Statement of Financial Position
Row 1, Col 1

4. Income Statement
Document showing
Revenue & Expenses
1,2

5. Assets
Economic Resources
Owned by a business
1,3

6. 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

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

8. Stocks
Units of ownership
In a corporation
2,2

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

10. 2,4 Liabilities Debts or obligations of an entity that
resulted from past transactions.
2,4

11. 3,1 Retained Earnings The portion of stockholder’s equity
that has accumulated as a
result of profitable operations.
3,1

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

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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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