Accounting Terms 1
Accounting Terms 2
Accounting Terms 3
Accounting:
True or False
Accounting Transactions
100
Anything of value that is owned.
What is Asset?
100
An amount owed by a business.
What is a liability?
100
The normal balance of an asset account.
What is Debit side?
100
When $1500.00 is received on account, Cash is increased with a Debit and Accounts Receivable is decreased with a Credit?
What is True?
100
Received cash from owner as an investment, $15,000.00.
What is Debit the Cash account and Credit the Owner, Capital account for $15,000.00?
200
An equation showing the relationship among assets, liabilities, and owner's equity.
What is the accounting equation?
200
An increase in owner's equity resulting from the operation of a business (such as sales or services).
What is Revenue?
200
When a business pays cash on account, a liability is increased or decreased by a Debit or Credit?
What is decreased by a Debit?
200
Total assets are the amount the owner has invested in the business.
What is False?
200
Paid cash for insurance, $5,000.00.
What is Credit the cash account and Debit the Prepaid Insurance account for $5,000.00?
300
A business owned by one person.
What is a proprietorship?
300
Planning, recording, analyzing, and interpreting financial information.
What is accounting?
300
When cash is received from sales, the change in owner's equity is usually recorded in this type of account.
What is Revenue account?
300
The accounting equation is: Assets+ Liabilities= Owner's Equity
What is False?
300
Bought supplies on account from Lee's Supplies, $1600.00.
What is Debit the supplies account and Credit the Accounts Payable- Lee's Supplies account for $1600.00?
400
A decrease in owner's equity resulting from the operation of a business.
What are Expenses?
400
The right side of the T account is called this.
What is "Credit?"
400
Increase in a revenue account are shown on a T account's left (Debit) or right (Credit) side?
What is right (Credit) side?
400
After each transaction, the accounting equation must remain in balance.
What is True?
400
Paid cash on account to Lee's Supplies, $1000.00.
What is Credit the Cash account and Debit the Accounts Payable-Lee's Supplies account for $1,000.00?
500
A sale for which cash will be received at a later date.
What is sale on account (Accounts Receivable)?
500
The side of the T account that increases the account balance.
What is normal balance?
500
The normal balance side of any expense account is this.
What is Debit side?
500
Payments for advertising, equipment repairs, utilities, and rent are expense transactions.
What is True?
500
Sold services on account to Jones Computers, $3,500.00.
What is Debit the Accounts Receivable- Jones Computers account and Credit the Revenue account for $3,500.00?
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