ch 1
To create useful reports, financial information must be maintained in an organized way. Planning, recording, analyzing, and interpreting financial information.
Accounting
An amount owed by a business
Liability
An increase in owners equity
revenue
An accounting device used to analyze tansactions
T account
A business paper from which information is obtained for a journal entry
source document
Organized summaries of a business financial activities
Accounting Records
The amount remaining after the value of all liabilities
Owners Equity
A decrease in owners equity resulting from the operation of business.
Expense
Left side of a T account
Debit
A business form ordering a bank to pay cash from a bank account
check
A person who plans, summarizes, analyzes, and interprets accounting information
Accountant
A business activity that changes assets, liabilities, or owners equity
Transaction
Assets taken out of a business for the owners personal use
Withdrawals
right side of T account
Credit
A business from giving written acknowledgment for cash received
receipt
A person who records, sorts, and files accounting information is often called...
Accounting Clerk
The amount in an account
Account balance
What side is cash on
Left
Assets
Left side
A form on which a brief message is written describing a transaction
memorandum
What does (CMA) stand for?
Certified Management Accountant
The account used to summarize the owners equity in business.
Capital
What side is Prepaid insurance on
Left
Liabilities
right side
what do you put in as a title name for sales
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