Definitions
Accounting device used to analyze transactions
T-Account
How many T-Accounts do you write in with one business transaction?
2
Purchased Insurance with Cash
Prepaid Insurance and Cash
Complete the lyric from your favorite Accounting song:
"Debits on the _____, Credits on the _____"
(Extra 100 if someone on your team sings the tune and does the dance)
left, right
(both hands should go out to the left then out to the right)
Side of the account that is increased
Normal Balance
paid cash for insurance
debit prepaid insurance
credit cash
Received Cash from owner as an investment
Cash and Capital
The 2 ways to represent the Accounting Equation.
Assets = Liabilities + Owners Equity
Assets - Liabilities = Owners Equity
the process of planning, recording, analyzing and interpreting financial information
Accounting
bought supplies on account
debit supplies
credit accounts payable
Purchased Supplies on Account
Supplies and Accounts Payable
GAAP
Generally Accepted Accounting Principals
Costs a company incurs to generate revenue or the cost of goods or services used to operate a business
expenses
paid cash on account
debit accounts payable
credit cash
Paid Cash on Account
Cash and Accounts Payable
What is the most common length of time to pay a bill/invoice (that we have discussed in class)
30 days
Removing funds from a bank account, savings plan, pension, or trust.
withdrawal
sold services on account
debit accounts receivable
credit capital (revenue)
Withdraw funds from the business
Cash and Capital
What is the name of the song describing Debits and Credits?
The Debit Credit Theory