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
How do you determine net loss or net income
If expenses are more than sales, loss
If sales are more than expenses, income
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
Normal balance side of a liability
Credit
A business paper from which information is obtained for a journal entry
Source Document
Normal balance side of Income Summary
Doesn't have one
Transferring information from a journal entry to a ledger account
Posting
What's the first account listed in your closing entries
Sales (and Income Summary)
What is listed on a Balance Sheet
Assets, liabilities and owners' equity
What type of accounts are listed on a post-closing trial balance
Assets, liabilities, and Owner's Equity.
In a journal, the columns for Sales and Cash are called
Special Amount Columns