Ch 1
Use your financial investigative powers to keep an eye on the books.
What is a Auditor?
Business owned by one person.
What is Proprietorship?
A transaction to pay for goods or service needed to operate a business result in a decrease in owners equity.
What is Debit?
A form for recording transactions in chronological order.
What is a Journal?
Examine accounting and other financial records to find business fraud forgeries and irregularities.
What is a forensic accountant?
Cleaning carpets for a fee.
What is a service business?
Total Assets
What is the total on the left side of the balance sheet called?
An account recorded on the right side of a T account.
Recording Transactions in a journal.
What is a certified public accountant?
Assets=liabilities+Owners Equity
What is an Accounting Equation?
Total Liabilities and owners equity?
What is the total on the right side of the balance sheet?
What is a T account?
The nature of the business determines the type of journal used.
What is an Remember?
Keep track of all of the $ a company receives and spends.
What is a book keeper?
When a business financial info is recorded and reported.
what is a Business Entity?
What is the heading on the left side of the balance sheet?
Assets
Assets=Liabilities+Owners equity
what is the Accounting Equation?
A journal amount column headed with an account title.
What is Special Amount Column?
The mathematical experts who estimate risks and costs for insurance Companies.
What is a Actuary?
Paid cash on account
Is cash increased or decreased?
Both sides must be equal
What is a balance sheet?
The left side must equal the right side.
What do both accounts have to have in common?
A journal amount column that is not headed with a account title.
What is a General Amount Column?