Russell Notes

Question 1

What are the 6 branches of accounting?

Answer 1

1. Financial
2. Cost
3. Managerial
4. Tax
5. Auditing
6. Accounting Systems

Question 2

What are the 5 types of Asset Accounts?

Answer 2

1. Cash
2. Accounts Reveivable
3. F&B Inventory (Inventory)
4. Prepaid Expenses
5. Fixed Assets

Question 3

What are the 5 types of liability accounts?

Answer 3

1. Accounts payable
2. Accrued expenses
3. Unearned Income
4. Note payable
5. Mortgage payable

Question 4

What are the typical equity accounts?

Answer 4

1. Paid in capital
2. Retained earnings
3. Undesignated net assets
4. Designated net assets

Question 5

What are the 6 steps in the accounting cycle?

Answer 5

1. Journal entires
2. Posting (debits and credits)
3. Trial balance
4. Adjusting entries
5. Adjusting trial balance
6. Preparation of financial statements

Question 6

What is the balance sheet called in a private club?

Answer 6

Statement of financial position

Question 7

What is a horizontal analysis?

Answer 7

Dollars to dollars over different time periods.

Question 8

What is a vertical analysis?

Answer 8

An analysis where dollars are converted to a ratio of percentage.

Question 9

What is a income statement in a private club?

Answer 9

Statement of activities.

Question 10

What are the three areas of activities in a statement of cash flow?

Answer 10

1. Operating (F&B, golf, dues)
2. Investing (buying/selling assets)
3. Financing (debt and/or equity)

Question 11

What is the CVP formula?

Answer 11

Fixed costs / Contribution margin