Accounting Essentials
This is the most common way to write the fundamental accounting equation.
A = L + OE
This book provides a chronological record of all business transactions.
The Journal
This is the current rate of Harmonized Sales Tax (HST) in Ontario.
13%
This financial statement is used to show the net income or net loss of a business for a period.
Income Statement
This concept requires keeping an organization's finances separate from the personal finances of its stakeholders.
Business Entity Concept
This is the term for the process of transferring information from the journal to the ledger.
Posting
This level of government is responsible for receiving HST remittances from businesses.
Federal Government
This term describes assets like Bank or Accounts Receivable that can be quickly converted to cash.
Liquid asset
This principle states that assets must be recorded based on their value at the time of the original transaction.
Cost Principle.
This business paper shows the nature of a transaction and provides the information needed to account for it.
Source Document
This calculation determines the amount a business must remit to the government: HST Payable minus this ...
HST Recoverable
This financial statement provides a snapshot of a business's financial position at a specific point in time.
The Balance Sheet
This is the period of time required to complete one full accounting cycle.
Fiscal Period
This accounting tool is used to verify that total debits equal total credits.
Trial Balance
This party in a transaction is legally responsible for collecting and remitting the HST.
The seller (company)
Although it is a physical item, merchandise inventory is categorized as this type of asset—not a fixed asset—because it is expected to be sold within a year.
Current Asset