1. An asset is a resource owned by a business that is expected to provide future value. Examples of assets include cash, inventory, accounts receivable, vehicles, and equipment. 2. When a client makes a payment towards their accounts receivable balance, it affects the balance sheet by increasing cash and decreasing accounts receivable. 3. Expenses decrease net income, which decreases equity on the balance sheet. Transactions are recorded with debits and credits, with debits recorded on the left side and credits on the right side of T-accounts.

1. An asset is...
1a

2. a resource owned by
a business that is
expected to provide
future value.
1b

3. A client pays $500 towards
their Accounts Receivable
balance. What financial
statement(s) are affected?
2a

4. Balance Sheet
(increase cash,
decrease A/R)
2b

5. The company takes out a
loan to purchase a new
vehicle. How is owner's
equity affected?
3a

6. It's not! Debit Vehicle,
Credit Loan Payable
3b

7. Credit means...
4a

8. RIGHT
4b

9. Debit means...
5a

10. LEFT
5b

11. The debts of a
business
6a

12. Liabilities
6b

13. An entry on the left
hand side of a T-
account is a...
7a

14. Debit
7b

15. Fixed assets increase
with a...
8a

16. Debit
8b

17. Give 3 examples of
an asset
9a

18. Cash, Inventory,
Accounts Receivable,
Vehicles, PP&E,
Goodwill
9b

19. Give 3 examples of
liability accounts
10a

20. Accounts Payable,
Credit Card Payable,
Notes Payable, Loan
Payable
10b

21. How do expenses
affect the equity
account?
11a

22. Expenses decrease
net income, which
decreases equity
11b

23. How do you handle a
personal transaction
on a business
account?
12a

24. Owner's equity
12b

25. If assets total $500
and liabilities total
$300, how much is
Equity?
13a

26. $200.00
13b

27. If Cash is $5,000, A/R
is $2,252 and Equity is
$1,000, how much are
liabilities?
14a

28. $6,252.00
14b

29. List 5 examples of
Expense Accounts
15a

30. Utilities, Rent,
Internet, Advertising,
Office Expenses
15b

31. A listing of all the
accounts and
subaccounts in the
general ledger
16a

32. Chart of Accounts
16b

33. A new vehicle would
be reported on which
financial statement?
17a

34. Balance Sheet
17b

35. On which financial
statement are assets
listed in order of
liquidity?
18a

36. Balance Sheet
18b

37. Owner's Equity
decreases with a...
19a

38. Debit
19b

39. Owner's Pay &
Personal expenses
increases wih a...
20a

40. Debit
20b

41. Recording revenues when
they are earned rather than
when the money is received
is part of which basis or
method of accounting?
21a

42. Accrual Basis
21b

43. Recording revenue when
cash is collected (rather
than when earned) is part
of which basis of
accounting? 22a

44. Cash Basis
22b

45. Rent Expense
increases with a
23a

46. Debit
23b

47. T/F PayPal can be
connected as a bank
account?
24a

48. TRUE
24b

49. T/F You should connect a
personal account if there
are some business
transactions on it?
25a

50. FALSE
25b

51. Under the accrual basis of
accounting, a payment
made in 2019 for the 2020
insurance expense will:
26a

52. Decrease cash,
increase Prepaid
Insurance
26b

53. Under the cash basis of
accounting, a payment
made in 2019 for the 2020
insurance expense will:
27a

54. Decrease cash,
increase Insurance
Expense
27b

55. What accounts are
affected when you
enter a utility bill?
28a

56. Utilities Expense,
Accounts Payable
28b

57. What are fixed
assets?
29a

58. Assets with a useful
life > 1 year
29b

59. What is a liability?
30a

60. The debts of a
business
30b

61. What is an expense?
31a

62. A cost incurred to
operate a business
31b

63. What is one pain
point your ideal client
has?
32a

64. Cash flow, cash
management,
understanding the
financials, stress,
overwhelm 32b

65. What is revenue?
33a

66. Earnings from
operations
33b

67. What is the
accounting equation?
34a

68. Assets = Liabilities +
Owner's Equity
34b

69. What is the most
liquid asset?
35a

70. Cash
35b

71. What's one thing that
makes your business
unique?
36a

72. Your service, your
responsiveness, your
customer support,
YOU!
36b

73. What statements are
affected when you
enter a utility bill?
37a

74. Profit & Loss, Balance
Sheet
37b

75. What's the first "click"
for a client to invite
you to QBO?
38a

76. Click on the Gear
Icon > Manage Users
38b

77. Where would you
categorize a client's
website domain
expense?
39a

78. Depends on the client!
Website Expenses,
Advertising, or
Capitalize
39b

79. Which accounts increase
when you perform
services on account for
a customer?
40a

80. Accounts Receivable,
Revenue
40b

81. Which accounts
increase with a
credit?
41a

82. Liabillities, Equity,
Revenue
41b

83. Which accounts
increase with a debit?
42a

84. Draws, Expenses,
Assets
42b

85. Which financial statement
is a "Snapshot" that
summarizes a company'
financial position?
43a

86. Balance Sheet
43b

87. Which financial
statement shows Net
Income?
44a

88. Profit & Loss or
Income Statement
44b

89. Which financial
statement shows the
accounting equation?
45a

90. Balance Sheet
45b

91. Which report would I
look at to see how
much I owe my
vendors?
46a

92. Balance Sheet
46b

93. Which report would I
look at to see how
much I spent on rent?
47a

94. Income Statement
47b

95. Which report would I
run to see how much
each of my customers
owe me?
48a

96. Accounts Receivable
Summary
48b

97. Why is it called
"double entry"
accounting?
49a

98. Because every
transaction has at
least one debit and
one credit
49b

99. Your client spent $6800 at
Home Depot to make
repairs. They returned
some parts for $590. How
do you handle the refund?
50a

100. Refunds get coded to
the original expense
account.
50b