Vocabulary
____ is the financial record keeping system in which each business transaction affects at least 2 accounts.
What is Double-entry accounting?
Only has one owner.
What a sole proprietorship?
The ____ side is the side in which a credit placed on the T-account for assets.
What is the Right?
The Normal Balance is always on the ___ ___ of the T-account.
What is increase side?
Primary purpose of accounting is to ____ business activities and ____ those _____ to external users to make decisions.
What is measure, communicate and measurements?
The _____ is a list of all the accounts a business uses.
What is chart of accounts?
Owned by two or more individuals.
What is a partnership?
The increase side of an asset is a ____?
What is Debit?
Debit is the _____ side in an asset.
What is increase?
To record revenue in the period in which the business provides the goods or services?
What is the revenue recognition principle?
Transactions that primarily involve the purchase and sale of long term assets.
What are investing activities?
The most advantageous reason to incorporate a business.
What is limited liability?
A liability increases with a ___ and decreases with a ____.
What is credit and debit?
Accounts payable normal balance is on the ____ side.
What is right/credit?
The day to day activities of a business.
What are operating activities?
Trained individuals hired by a company as an independent third party to express a professional opinion of the conformity of that company's financial statements with GAAP.
Who are auditors?
A separate legal entity from it's owners.
What is a corporation?
The normal balance is always the ____ side.
What is Increase?
Accounts Receivable normal balance is on the ____ side
What is debit/left?
Transactions that primarily involve external sources of funding a business.
What are financing activities ?
Receiving cash from customers before providing any goods or services.
What are deferred revenues?
The assumption that a business will continue to operate indefinitely.
What is Going Concern?
In Owner's Equity, ____ is the increase side.
What is credit?
The Normal Balance for Office Equipment is on the __ side.
What is debit/left?
Disadvantage of a corporation in which the company's earnings are taxed multiple times.
What is double taxation?