Accounting 1
what is land considered?
asset
when supplies are purchased with cash, what will happen to the cash account?
the cash account will decrease
The natural balance of all assets and expense accounts
Debit
A group of accounts
ledger
what is a current asset
cash
What happens to the two accounts when you buy office equipment with cash?
cash account decreases, office equipment increasses
what is owners equity
the owner's investments to the business
Accounting entries involve a minimum of how many accounts?
two
what happens to the cash account when you sell a product and receive cash from your customer?
the cash account increases
entering the transaction on the right hand side of the accounting equation; natural balance of liabilities and owner's equity.
credit
the amount of money in an account is called the
account balance
An amount owed by a business
liability
when cash is received, the cash account will change in what way
the cash account will increase
A record that summarizes all the transactions pertaining to a single item in the accounting equation
account
What happens to a the value of a new car once it is purchased
It depreciates
business papers from which information is obtained for journal entries
Source documents
The owner's equity in a corporation
Stockholders' equity
Journal used to record only one type of transaction
Special journal
short hand accounting method used to show accounts are in balance
T-Account
the recording of a debit and credit parts of a transaction
double-entry accounting
When a business owner receives a loan from the bank, what will happen to his cash account?
The cash account will increase
Payments made to employees for work performed
wages and salary
What is a business with two or more owners called?
Partnership
Transferring transaction information from a journal entry to a ledger account
Posting
Accounts receivable is ________
An Asset