Basic Vocab
The accounting equation
A=L+OE (will accept A=L+O)
CASH
What is an asset
Two t-charts used for this scenario:
Ms.Swanson uses $50 cash to purchase inventory.
What are cash and inventory
Cash
What is plus-minus
The account for all money the business had including in an accounts and in dollar bills.
The true meaning of debits and credits in this class
What is the left and right side of t-accounts.
Accounts Receivable
What is an asset?
Two t-charts used for this scenario:
Mr.Johnson purchases office supplies on account for $100.
What are office supplies and accounts payable
Salaries Payable
Minus-Plus
A liability is something a business ______
What is OWES
The definition of Owners Equity
What is the investment in a business AFTER deducting all liabilities and debt OR the owner's stake in the business
Service Revenue
What is owner's equity
Mrs.Volgeler worked for Sam's Silly Socks and earned a salary of $300 but has not received a paycheck yet.
What are salaries expense and cash
Accounts Receivable
Plus-Minus
Five different asset accounts
What are (any combo of five):
Cash, accounts receivable, inventory, supplies, buildings, etc.
The definition of NORMAL BALANCE
What is the side of debits/credits that "normally increases"
Salaries Payable
What is a liability
Two t-charts used for this scenario:
Mrs.Johnson purchased goods from Sam's Silly Socks for $25 but did NOT pay cash. Sam's Silly Socks sent an invoice to Mrs.Johnson.
(doing accounting for Sam's Silly Socks)
What are inventory and accounts receivable
Service Revenue
Minus-Plus
Definition of Double-Entry Accounting
What is a system where every transaction is recorded in at least two accounts
The description of the second step of the accounting cycle, Journalizing Transactions.
What is recording transactions using debits and credits to ensure equation is balanced.
Prepaid Insurance Expense
What is owner's equity
Two t-charts used for this scenario:
Mr.Been's business made $500 in book sales
What is cash and sales revenue
Prepaid Insurance Expense
Plus-Minus
All steps of the accounting cycle in order
What are: Transactions and events, Journalize Transactions, Posting to Ledger, Preparing Trial Balance, Adjustments, Adjusted Trial Balance, Prepare Financial Statements, Close Accounts, After-Close Trial Balance.