Terms 1
Planning, recording, analyzing, and interpreting financial information
What is Acocunting?
Applied when a business’s financial information is recorded and reported separately from the owner’s personal financial information
What is a Business Entity?
How the accounting equation is written
What is Assets = Liabilities + Owner's Equity
Received cash from owner as investment
What is increase cash and increase capital?
Left side of a balance sheet
What are Assets?
A planned process for providing financial information that will be useful to management
What is an accounting system?
Anything of Value that is owned
The accounting equation must be in _________ to be correct
What is balance?
Paid cash for supplies
What is decrease cash and increase supplies?
Heading of a Balance Sheet
What is name of company, name of financial document, and date prepared?
Organized summaries of a business’s financial activities
What are accounting records?
Financial rights to the assets of a business
What are equities?
If you have an increase on one side, you must do this on the other side.
What is increase?
Paid Cash for Insurance
What is decrease cash and increase prepraid insurance?
Right side of a balace sheet
What are liabilties and Owner's Equity?
A business that performs a service for a fee
What is a service business?
An amount owed by a business
What are liabiltiies?
If you have an increase on one side, you must do this on the same side
What is decrease
Bought Supplies on account from Nike Sports Supply Company
What is increase supplies and increase accounts payable - nike sports supply company?
Markings used when both sides are equal
What are double line rulings?
A business owned by one person
What is a Proporietorship (Sole Proporietorship)?
A financial statement that reports assets, liabilities, and owner’s equity on a specific date.
What is a balance sheet?
All transactions must have 2 entries in the accounting equation.
What is double entry accounting?
Paid Cash on account to Nike Sports Supply Company
What is decrease cash and decrease Accounts Payable - Nike Sports Supply Company?
Daily Double
Name of totals line on right side of the balance sheet
What is Total liabilties + Owner's Equity