1. Bluff Numbers Day Two 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3012345678910111213 14151617181920212223 24252627282930 3131 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4832333435363738394041 42434445464748 4949 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 6750 515253545556575859 6061626364656667

2. What is the first step in the accounting cycle? Collect and verify source documents

3. What is the third step in the accounting cycle? Post journal transactions to ledger

4. What is the last step in the accounting cycle? Prepare the post-closing trial balance

5. Assets = Liabilities plus Owner’s Equity A = L + OE This is the same as the balance sheet equation accounting equation

6. The amount of money owed to others for goods or services bought on credit. accounts payable

7. The money owed to a company for services rendered or goods purchased by customers on credit. accounts receivable

8. The money and things a company owns Assets

9. The total of cash and other assets put into the business by the owner. Capital

10. The amount of money that comes into and goes out of a company. cash flow

11. The list of accounts unique to a specific company based on its business. These accounts are used to track dollar amounts coming into and going out of a company. chart of accounts

12. The right-hand column of dollar amounts. Credit

13. An entity or individual that lends money to a company creditor (see liabilities)

14. The acronym used to remember which debit and credit accounts get increased. DEAD COIL

15. The left-hand column of dollar amounts. Debit

16. The fact that every transaction affects at least two accounts double-entry accounting

17. The money that’s spent by a company to continue its business activities and operations. Expenses

18. Money earned for goods or services provided to customers. income (see revenue)

19. Money or assets owned personally by the business owner and put in to the business for business use. Investments

20. A record of financial transactions listed chronologically in a log. Journal

21. The money a company owes liabilities (see creditor

22. The money a company owes another beyond a year, usually in exchange for a product. notes payable

23. The value of the owner’s investment in a company. owner’s equity

24. The money that’s earned from a company’s business activities. revenue (see income)

25. The paper trail that provides evidence that money or capital came into or out of the company. source documents

26. An exchange (i.e., fee for service, money for tangibles or things, donations, contributions, etc.) that amounts to value that must be recorded. Transaction

27. Cash or other assets taken out of the business by the owner for personal use. Withdrawals

28. The sequence of detailed transactions that supports accounting entries. Provides a clear path of transactions that a reviewer can follow in order to understand specific accounting activity. audit trail

29. The log that contains a record of each account. It’s prepared after the general journal and before the trial balance general ledger

30. The process of transferring amounts from the general journal to the general ledger. posting

31. This type of error switches the digits of a number, for example, writing 53 instead of 35. transposition error

32. A list of all the accounts and their balances. Most information needed for preparing the various financial statements is noted on this single page. trial balance

33. This type of error misplaces the decimal in a number; for example, writing $180 instead of $1,800. slide error

34. A statement that itemizes the revenue and expenses, and computes the net income or loss for a period of time. Also referred to as a profit and loss statement, a P&L, and a statement of earnings. income statement

35. Revenue – Expenses = Net Income (or Net Loss) income statement equation

36. Occurs when a company’s revenues exceed its expenses. net income

37. Occurs when a company’s expenses exceed its revenue. net loss

38. An item of value owned by an individual or firm. Asset

39. Insurance that pays for income lost when a business is closed because of a covered disaster. business interruption insurance

40. Increasing market penetration by moving into new markets and broadening the consumer base. diversification

41. An agreement, signed by an employee, not to disclose sensitive information about a business. employee confidentiality agreement

42. Insurance protecting a business from lawsuits. general liability insurance

43. Misconduct by a professional, such as a doctor, lawyer, or accountant. It is judged by comparing the professional’s action or inaction against a “reasonable person” standard malpractice

44. To lessen or minimize the severity of one's losses or damage. mitigate

45. A fixed periodic payment made to insurance companies in exchange for insurance. premiums

46. Insurance protecting a company from lawsuits if someone is injured by its product. product liability insurance

47. Situation where there is a chance of either loss or no loss, but no chance of gain; for example, either a building will burn down or it won'tchancelossgainbuilding pure risk

48. Steps a manufacturer takes to ensure that its products are safe and meet the company’s standards.products Quality assurance

49. The potential for a negative event. risk

50. To reduce the risk to an asset through reducing the probability of a problem and limiting the effects of a problem once it occurs. Risk mitigation

51. A situation where the possibility of either a financial loss or a financial gain exists, as in purchase of sharesfinanciallossgain purchaseshares Speculative risk

52. A partnership between two businesses, where the businesses share resources instead of developing them internally. Sometimes the term joint venture is used for these partnerships. strategic partnership

53. A monetary guarantee that an obligation will be fulfilled. If the obligation is not fulfilled, the offended party gets to recoup its losses via the bond. surety bond

54. Monetary compensation for an employee injured while working, often mandated by law. Such compensation pays a percentage of lost wages and the employee’s medical care for that injury. workers compensation

55. A document sent to shareholders at the end of every year Annual report

56. A summary of a firm’s assets, liabilities, and owner equity. It can also be called a statement of financial position. balance sheet

57. Methods for analyzing the financial status of a firm, including balance sheets and cash flow statements. financial analysis tools

58. A financial document showing a company’s revenues and expenses, and the difference between them. It is usually published quarterly or annually— though many managers prepare one each month profit and loss statement

59. Establishing a planned level of spending for a given time period. budgeting

60. A planned level of cash income and spending for a given time period. cash budget

61. Opportunities, risks, and threats that are outside of an organization’s control. Political, environmental, technological, and social factors external factors

62. To estimate for the future based on current data extrapolation

63. The process of making extrapolations about the future based on past data forecasting

64. The process of allocating a firm’s resources to maximize value. manage

65. A projection of income and expenses based on a forecasted sales revenue for a given time period. operating budget

66. An analysis based on subjective judgment that is not quantifiable, such as management expertise, labor relations, etc. qualitative analysis

67. An analysis based on understanding the reasoning of a given event or behavior. quantitative analysis

68. The process of allocating money to a specific project, business unit, or cause. A way to assign the available resource in a very specific and economic way. resource allocation