Ch. 1
Planning, recording, analyzing, and interpreting financial informatiom
what is accounting
A business that performs an activity for a fee
what is a service business
A decrease in owners equity resulting from the operation of a business
what is Expense
An amount recorded on the left side of the T account
what is debit
Recording transactions in a journal is called
what is Journalizing
A person who plans, summarizes, analyzes, and interprets accounting information
what is an accountant
Anything of value that is owned
what is an asset
An increase in owners equity resulting from the operation of a business
what is revenue
when cash is received does the cash account decrease or increase
what is increase
A business form giving written acknowledgement for cash is called
what is a receipt
A business selling accounting services to the general public
what is a public accounting firm
A business owned by one person
what is a proprietorship
Assets taken out out of a business for the owners personal use
what are Withdrawals
An account device used to analyze transactions is called
what is a T account
A form for recording transactions in chronological order
What is a journal
The principles of right and wrong that guide an individual in making decisions
What is ethics
An amount owned by a business
what is a liability
how many accounts are changed in each transaction of the accounting equation
An amount recorded on the right side of the T account
what is credit
determining that the amount of cash agrees with the accounting records is called
what is proving cash
what does CPA stand for
What is certified public account
what is Assets= Liabilities + Owners Equity
What does SBA stand for
An account that reduces a related account on a financial statement
what is a Contra account
A form on which a brief message is written describing a transaction
what is a memorandum