Financial Statements
The profits a company has made since the beginning
What is retained Earnings
This comes first on a Journal Entry
What is debit
A cost incurred that hasn't been paid.
What is an accrual
Account Payable is a
What is a liability
The Accounting Equation
What is A=L+O/E
The financial position of a company on any given day
What is a balance sheet
Company 123 paid $100 for supplies
What is
Supplies $100
Cash $100
The journal entry for, a car was bought for $25,000. It is now worth $19,000.
What is
Depreciation Expense 6,000
Accumulated Depreciation 6,000
Costs Incurred
What is an Expense
Accounting Rules that Companies have to follow
What is GAAP
The formula for the income statement
What is Revenues-Expenses
This is on the right side of a t-account
What is credit
Money earned that has not yet been received.
What is a Deferral
Things invested into the Company
What is Owners Equity
The owners are separate from the corporation
What is the Separate Entity Principle
Categories of accounts on a balance sheet
What is Assets, Liabilities, and Owners Equity
Company ABC paid Creditors $500
What is
A/P $500
Cash $500
The adjusting journal entry for dividends
What is
Dividends
Dividends Payable
Deferred Revenue is a
What is a Liability
Debits must equal Credits
What is the Double Entry Accounting Principle
Retained Earnings if
Expenses: $30,000
Revenues: $100,000
B/B R/E: $50,000
Dividends: $20,000
What is $100,000
Kevin Hart is starting a business. He transferred $50,000 from his bank account to an account to be used for the business.
What is
Cash $50,000
C/S $50,000
On March 1st, we paid rent for the upcoming year in the amount of $8,000. It is now December 31st.
What is
Rent Expense 6,666.67
Prepaid Rent 6,666.67
Natural Balance of an asset
What is Debit
NEVER NEVER NEVER NEVER NEVER NEVER NEVER NEVER NEVER have two of these in a transaction
What is Income Statements Accounts