Which Accounts?
Debit or Credit?
True or False?
Vocabulary
The Accounting Cycle
100
assets, liabilities, owner's equity
What accounts are on a balance sheet?
100
debit
Which side is an asset on?
100
true
Nil balance means 0
100
the language of business
Definition of accounting?
100
transactions occur
What is the first step of the accounting cycle?
200
assets, liabilities, capital
What accounts are on a trial balance?
200
credit
What side is a liability on
200
true
A fiscal period is one year?
200
generally accepted accounting principal
Definition of GAAP?
200
Recurring set of accounting procedures that happen each fiscal year
What is the definition of the accounting cycle?
300
revenue, expenses, net income
What is on an income statement?
300
credit
What side is revenue on?
300
false
In the chart of accounts assets are numbers 200-299
300
one owner
Definition of sole proprietorship?
300
8 steps
How many steps are in the accounting cycle?
400
fixed assets, current assets, current liabilities, long-term liabilities, owners equity
What is on an extended balance sheet?
400
debit
What side are expenses on?
400
false
Net income is expenses-revenue?
400
does not make or sell a product as its main activity
Definition of service business?
400
transactions recorded in journal
What is the second step in the accounting cycle?
500
assets, liabilities, capital/drawings, revenue, expenses
What is on chart of accounts?
500
credit
What side is capital on?
500
true
Cash is the most liquid account?
500
journal entries made at the end of an accounting period
Definition of adjusting entries?
500
post-closing trial balance prepared
What is the last step of the accounting cycle?
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