Classification of Accounts
Land is considered to be this type of account.
What is an asset?
The account into which an owner deposits their initial investment into the business.
What is the Cash at Bank account
The remaining amount of money left in an account is called the,..
What is the account balance?
Business expenses are referred to as to saying...
"the cost of doing business"
When a business is making money, What is that called?
a profit
A loan from ANZ bank is considered to be this type of account.
What is a liability?
Which two accounts are affected when you buy office equipment with cash?
What is cash at bank account and office equipment?
what happens to the cash account when you sell a product and receive cash from your customer?
which account is the Accounts Receivable listed as?
An Asset
This account records the owner's investment in the business and forms part of the Accounting Equation.
What is owner's equity?
When receiving a loan from the bank, what will happen to the cash at bank account?
What is an increase, (in the cash at bank account)?
When supplies are purchased with cash, this effect will occur to the cash at bank account balance.
What is a decrease, (in the cash at bank balance)?
This type of account is generally named/called due to the inflow of cash into the business as a result to trading activity.
What is revenue?
what will usually cause the accounts payable to increase
purchasing a company printer and paying for it later
This type of account is so named due to the costs incurred by the business in the production of revenue.
What is an expense?
when cash is received, the cash account will change in what way
the cash account will increase
Accounting entries involve a minimum of how many accounts?
two
The salary earned by an employee after all payroll deductions have been made
net pay