Basic Terms
The accounting equation is Assets = Liabilities + _____
What is Equity
A debit to cash will generally make cash go ____ (Up or Down)
What is Up
This statement shows a "snapshot" on a single date
What is the balance sheet.
The government taxes a persons earnings through this annual report.
The people who own a company are called
What is owners/shareholders
This financial statement shows revenues and expenses for a period.
What is the income statement
A credit to revenue will make revenue go ____ (up or down)
What is Up
Retained earnings appear on this financial statement
What is the statement of changes in equity
Money you can earn from a job before taxes are taken out is called ___ income
What is gross income.
The money a business earns from selling goods and services are called ____
What is revenue
The value of what a company owns is called
What are assets
In double entry accounting, every debit must have at least one _____
What is credit
Cash received from customers is listed in this section of the cash flow statement.
What is operating activities
Expenses you can legally subtract from income to reduce taxes are called
What is a deduction
The costs a business has to run, like rent or salaries are called _____
What are expenses.
Where are debits located in a T account
What is left
Owners equity increases with this type of entry (Debit or Credit)
What is a credit
Selling equipment would usually show up in this section of the cash flow statement.
What is investing activates
The percentage of income you pay in taxes is called the ___ rate.
What is the tax rate
A plan that shows how a company will make money and operate is called a ____
What is a business plan.
Net income is calculated as Revenue - _____
What are expenses
When expenses increase, we recorded a _____ entry to the expense account.
What is a debit
Paying dividends appears in this section of the cash flow statement
What is financing activitys
Corporations pay this type of tax on profits.
What is corporate income tax.
A company's legal structure where owners are not personally responsible for debts is called a _____
What is a corporation.