Accounting A
The process of planning, recording, analyzing and interpreting financial information
Accounting
Basic Accounting equation
Assets = Liabilities + Owner's Equity
Normal balance
A sale for which payment will be made at a later date
Sale on account
Anything of value that is owned
Asset
An amount owed
Liability
Amounts to be received in the future due to the sale of goods or services
Accounts Receivable
In a chart of accounts, Expenses begin with what number
5
Assets taken from the business for the owner's personal use
Withdrawals
A business owned by one person
Proprietorship
The difference between assets and liabilities
Equity
In accounting, a group of accounts is called a(n)
Ledger
A form for recording transactions in chronological order
Journal
What is the debit and credit when you receive cash from sales
Debit Cash
Credit Sales
Any business activity that changes assets, liabilities, or owner's equity
Transaction
The amount remaining after the value of all liabilities is subtracted from the value of all assets is called
Owner's Equity
The recording of debit and credit parts of a transaction is called
Double-entry accounting
A form on which a brief message is written to describe a transaction
Memorandum
A business paper from which information is obtained for a journal entry
Source Document
The use of ethics in making business decisions
Business Ethics
Assets, Liabilities, and Equity appear on this financial statement
Balance Sheet
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
File maintenance
This professional credential is a highly regarded designation, and a common goal for many accountants
CPA
The person that invented accounting in the 1400s
Luca Bartolomeo de Pacioli
The number of steps in the accounting cycle
Eight