Double Entry Accounting
The left side of a "T Account."
What is a debit?
This person is responsible for tracking and reporting a company’s financial activities and ensuring accuracy in financial statements.
What is an accountant?
This term refers to anything a business owns that has value, such as cash, equipment, or property.
This type of financial report shows how much a business has earned and incurred over a certain period.
What is an income statement?
What organization is responsible for developing accounting standards in the United States?
What is the Financial Accounting Standards Board (FASB)
These are a resource of a business that increases when debited.
What is an Asset?
What is the business function that provides information for managers to use in the business?
This accounting term refers to the money a company owes to others, such as suppliers or lenders.
What are liabilities?
This term refers to anything a business owns that has value, such as cash, equipment, or property.
What are assets?
This principle requires businesses to report expenses in the same period as the revenues they help generate.
What is the matching principle?
Transactions are recorded in this and must include at least two accounts.
What is the journal?
What are Internal and External users?
The result of taking the total of all assets and subtracting the total of liabilities.
What is Owner's Equity?
A summary of the changes in owner’s equity that have occurred during a specific period of time, such as a month or a year.
What is the Statement of owner’s equity?
Two important characteristics that financial reports must possess.
What is relevant and faithful representation?
These two types of accounts increase on the debit side but, as a result, decrease the owner's equity.
What are drawing and expense accounts?
Accountants employed individually or within a public accounting firm in audit and tax services.
What is public accounting?
If a company has $50,000 in assets and $20,000 in liabilities, this is the amount of the owner’s equity.
What is $30,000?
A list of the assets, liabilities, and owner’s equity as of a specific date, usually at the close of the last day of a month or a year.
What is the balance sheet?
The initial amount an item is recorded at.
What is historical cost principal?
This account increases on the credit side as a result of selling products or services.
What is revenue?
Accountants employed by companies, government, and not-for-profit entities.
What is private accounting?
If a company pays off part of its debt, which two components of the accounting equation are affected?
What are liabilities and assets?
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.
What is the statement of cash flows?
Determines when revenue is recorded in the accounting records.
What is the revenue recognition principal?