Accounting 1
Anything of value that is owned
What is an "asset"?
debts owed by a business.
What is are liabilities?
Income earned.
What is revenue?
The costs required to spend money on something.
What is are expenses?
be able to provide needed information quickly.
What is an accounting system?
the last step in the accounting cycle
What is closing the books?
this is the process of recording transactions in a journal
What is a journalizing?
the first 4 steps in the accounting cycle
What is bookkeeping?
A receipt is an example of
what is a source document?
The process of keeping financial accounts.
What is a accounting?
Rules that accountants follow while recording and reporting financial activities
What is accounting standards?
The amount remaining after all liabilities is subtracted from the assets
What is the "owner's equity"?
An account for which payment will be received at a later date
What is accounts receivable?
an accounting term where every transaction affect two accounts.
What is double entry?
An amount owed by a business
What is a "liability"?
this user makes regular use of the accounting records
what are internal users?
A person or business to whom a liability is owed
What is a "creditor"?
A business activity that increases/decrease assets or liabilities
What is a transaction?
the purpose of accounting is to?
what is controlling finances of the business?
this financial statement has two categories, revenues and operating expenses. Also known as profit/loss statement.
what is a income statement?
Financial reports that summarize all the financial conditions of a business.
What are "financial statements"?
This user determines if he/she will make a profit from your business.
What is a investor?
A financial statement that summarizes a company's assets, liabilities, and owner's equity at a specific moment.
What is a balance sheet?
An accounting entry that increases asset and expense and decreases liability, revenue, and equity accounts.
What is a debit?
An accounting entry that decreases asset and expense and increases liability, revenue, and equity accounts.
what is a credit?