Statistics for Accounting Vocabulary

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This quiz has been taken 88 times
The average score is 10 of 25

Answer Stats

Definition	First Letter	Term	% Correct
A systematic way of recording and reporting financial transactions for a business or organization.	A	Accounting	84%
The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered. (2 words)	A	Accounts payable	75%
The amount of money owed by customers or clients to a business after goods or services have been delivered and/or used. (2 words)	A	Accounts receivable	74%
A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity, at a given time. (2 words)	B	Balance sheet	73%
An accounting entry that may either decrease assets or increase liabilities and equity on the company's balance sheet, depending on the transaction.	C	Credit	60%
A company's total earnings, calculated by subtracting total expenses from total revenues. (2 words)	N	Net income	60%
An accounting entry where there is either an increase in assets or a decrease in liabilities on a company's balance sheet.	D	Debit	56%
The direct expenses related to producing the goods sold by a business. (4 words)	C	Cost of goods sold	49%
Assets that will be converted to cash within one year. (2 words)	C	Current assets	44%
Debts that are payable within a year. (2 words)	C	Current liabilities	44%
An incurred expense that hasn’t been paid yet. (2 words)	A	Accrued expense	42%
A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. (4 words)	G	Generally accepted accounting principles	36%
Business expenditures not directly associated with the production of goods or services, e.g., advertising costs, property taxes or insurance premiums. (2 words)	O	Operation expenses	36%
The process of allocating or spreading capital investments into varied assets to avoid over-exposure to risk.	D	Diversification	33%
Expenditures that may change from one time period to another, e.g., labor costs. (2 words)	V	Variable expenses	32%
Long-term assets likely to provide benefits to a company for more than one year, such as a real estate, land or major machinery. (2 words)	F	Fixed assets	30%
Debts that are typically payable over a period of time greater than one year, e.g. a mortgage. (3 words)	L	Long-term liabilities	27%
A financial statement that is used to summarize a company’s performance and financial position by reviewing revenues, costs and expenses during a specific period of time, such as quarterly or annually. (4 words)	P	Profit and loss statement	27%
A financial asset or the value of a financial asset, such as cash or goods.	C	Capital	26%
A complete record of the financial transactions over the life of a company. (2 words)	G	General ledger	26%
A state whereby an individual or organization can no longer meet financial obligations with lender(s) when their debts come due.	I	Insolvency	25%
The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time. (2 words)	C	Cash flow	23%
A business document in which all ledgers are compiled into debit and credit columns in order to ensure a company’s bookkeeping system is mathematically correct. (2 words)	T	Trial balance	23%
Payments (e.g., rent) that will be made on a regular schedule. (2 words)	F	Fixed expense	22%
A group of securities that behaves similarly in the marketplace. (2 words)	A	Asset class	8%