T Accounts
What is a T-account?
A T-account is a simple accounting tool used to record increases and decreases in an account
What is business law?
Business law is a set of rules and regulations that govern how businesses operate
What does an accountant do?
An accountant records, organizes, and analyzes financial information.
What is a loan?
A loan is money borrowed by a person or business that must be repaid, usually with interest.
What is bookkeeping?
Bookkeeping is the process of recording and organizing a business's financial transactions.
What are the two sides of a T-account?
Debit (Dr.): The left side of the T-account.
Credit (Cr.): The right side of the T-account.
What is a contract?
A contract is a legally enforceable agreement between two or more parties.
What education is needed to become an accountant?
Many professional accounting positions require a bachelor's degree in accounting or a related field.
What is interest on a loan?
Interest is the cost of borrowing money.
What is the difference between a journal and a ledger?
Journal: Records financial transactions in chronological order, showing debits and credits.
Ledger: Organizes transactions by individual accounts, such as Cash, Sales Revenue, and Accounts Payable.
If a T-account has total debits of $900 and total credits of $350, what is its balance?
$900−$350=$550
Why is it important for businesses to follow consumer protection laws?
Consumer protection laws help protect customers from unfair business practices, false advertising, unsafe products, and fraud.
What are 3 skills are important for a successful accounting career?
Mathematical and analytical skills
Attention to detail
Honesty and integrity
Communication skills
Problem-solving skills
Computer and spreadsheet skills
What happens if a business fails to repay its loan on time?
The lender may charge late fees, charge additional interest, report the missed payment, or take legal action, depending on the loan agreement and applicable laws.
Why is it important to keep accurate bookkeeping records?
Accurate bookkeeping helps a business track income and expenses, prepare financial statements, manage cash flow, prepare tax returns, and make informed financial decisions.
Why must total debits equal total credits in a transaction?
Total debits must equal total credits to keep the accounting equation balanced:
Why is business law important in accounting?
Business law helps accountants ensure that financial transactions follow legal requirements.
What are 3 different careers in accounting?
Public Accountant, Management Accountant, Tax Accountant, Auditor, Government Accountant
What is collateral on a loan?
Collateral is an asset pledged by a borrower to help secure a loan. A car, house, boat, etc.
What is a trial balance, and why is it prepared?
A trial balance is a list of ledger accounts and their debit or credit balances at a particular time. It is prepared to check whether total debits equal total credits.
If a business receives $500 in cash from a customer, which side of the Cash T-account is affected?
The debit side is affected because cash is an asset, and an increase in an asset is recorded as a debit.
Why must businesses follow tax laws when preparing accounting records?
Businesses must accurately calculate, record, and pay applicable taxes.
Why is accounting an important career in the business world?
Accountants help business owners understand their financial position and make better decisions.
How can taking out too many loans affect a business?
Too much borrowing can increase interest costs, reduce available cash, make repayments difficult, and increase financial risk
What is the difference between Accounts Receivable and Accounts Payable?
Accounts Receivable: Money customers owe the business. It is an asset.
Accounts Payable: Money the business owes suppliers. It is a liability.