Debits and Credits
Expense accounts increase with a ________.
What is a Debit?
The accounting method that allocates expenses and revenue when paid.
What is Cash Accounting?
The department at Neptune that insures employee benefits and taxes are accounted for correctly.
What is the Human Resources or Payroll Department?
A list of accounts used by a business.
What is the General Ledger or Chart of Accounts?
Every journal entry must balance by having debits that are equal in amount to the ______.
What are Credits?
Accounts Payable, Loans payable, and taxes payable generally have _______ balances.
What is Credit?
The accounting method that allocates expenses when incurred rather than when paid.
What is Accrual Accounting?
The department that is responsible for extending credit, customer accounts, invoicing and collection.
What is Accounts Receivable?
The term "bottom line" refers to sales minus expenses=__________ on the Income Statement or Profit and Loss.
What is Net Income?
We receive a check for $500.00 from a customer for payment on an account. The account that is debited $500 is _____
What is Cash?
Loan principal is ______ by a debit when a loan payment is made.
What is Decreased?
The accounting term for items of value that a company owns and controls.
What are Assets?
The department that is responsible for bills, payments, and vendor accounts.
What is Accounts Payable?
The balance sheet report solves the following accounting equation: _______= liabilities plus owner equity.
What is Assets?
We purchase $500 in shop supplies on account. The account credited $500 is _____.
What is Accounts Payable?
The asset account that debits when a customer is invoiced.
What is Accounts Receivable?
Airplane parts are considered this type of asset account.
What is an Inventory Account?
The department at Neptune that is responsible for procurement, receiving, and inventory.
What is the Parts Department?
A _____ _____ forecast predicts the funds needed by a company for a given period of time.
What is Cash Flow?
We sell $500.00 in merchandise to a customer and they pay immediately. The account that is credited $500 is ____.
What is Sales?
Owner's Equity increases with a _______.
What is a Credit?
In addition to the owner of a company, these people have a claim against the company and assets.
What are Creditors?
The department that typically works with banks to obtain funding needed for capital expenditures or operations.
What is the Finance Department?
The ______ ________ shows the debit or credit balance for every account in the General Ledger or Chart of Accounts.
What is the Trial Balance?
When inventory is sold, this is the account that is used to recognize the cost of the inventory.
What is Cost of Goods Sold?