Transactions
Dr. Supplies
Cr. Cash
Paid cash for supplies
Personal Assets minus Personal Liabilities
Personal Net Worth
Normal Balance
Normal Debit Balance
something of value that is owed.
Liability
Realization of Revenue
Dr. Accounts Receivable
Cr. Sales
Sold services on account.
equity for a sole proprietorship
Owner's Equity
Cash
Bought on Account
Accounts Payable
Measuring financial statements using currency.
Unit of Measurement
Dr. Equipment
Cr. Accounts Payable
equity for a corporation
Shareholder's Equity
The order in which Receivables are listed.
Alphabetical Order
Increase Side
Right/Credit
The acronym
Generally Accepted Accounting Principles
Dr. Cash
Cr. Sales
Received cash for sales
Normal Balance
The order in which assets are listed on the balance sheet
Liquidity
The opposite of
Contra-Liability
Recording expenses with revenues they relate to
Matching Principle
Dr. Cash
Cr. Capital
Owner contributed cash to business
Contra-Equity Accounts
something your own that has a future economic benefit
Assets
The account title of two liabilities
Accounts Payable and Notes Payable
The standards board who creates GAAP
FASB