Ch.1
Planning, recording, analyzing, and interpreting financial information
What is accoutning
A business that performs an activity for a fee
What is a service business
Assets taken out of a business for the owners personal use
What is withdrawals
An accounting device used to analyze transactions
What is a T-account
a form for recording transactions in chronological order
What is a journal
Organized summaries of a business's financial activities
What is accounting records
A business owned by one person
What is a proprietorship
An increase in owner's equity resulting from the operation of a business
What is revenue
An amount recorded on the left side of a T account
What is debit
A business paper from which information is obtained for a journal entry
What is a source document
Financial reports that summarize the financial condition and operations of a business
What is financial statements
Anything of value that is owned
What is an asset
A decrease in owner's equity resulting from the operation of a business
What is exepnse
An amount recorded on the right side of a T account
What is credit
A business form ordering a bank to pay cash from a bank account
What is a check
A planned process for providing financial information that will be useful to management
Accounting system
Financial rights to assets of a business
What is equities
What accounts are affected when cash is received from sales?
What is cash, and owners equity
What is the normal balance side of an asset account?
What is the left side
A business form giving written acknowledgement for cash received
What is a receipt
Organized summaries of a business's financial activities
Accounting records
An amount owed by a business
What is liabilities
What accounts are affected by a cash payment for a expense?
What is cash, and owners equity
What is the normal balance side of a liability account?
What is the right side
A form on which a brief message is written describing a transaction
What is a memorandum