Accounting 1
Right side of a T-account.
What is a Credit?
Side of the T-account that is the increase side.
What is Normal balance?
A visual tool that is used by accountants to analyze business transactions to sort out debits and credits.
What are T-Accounts?
List of all accounts a business uses.
What is a Chart of Accounts?
Something accounts are grouped in. Used to be a big leather-bound book but is more likely, electronic now.
What is a Ledger?
Financial record keeping system in which each transaction affects at least 2 accounts.
What is Double-Entry Accounting?
Accounts Receivable: Explanation
What is a purchase on account by a customer?
Credit side of a T-account.
What is Right Side of the T-account?
Withdrawls account classification.
What is Owner's Equity?
An owner depositing money into the business increases these accounts.
What is Cash In Bank & Capital?
Revenue: Explanation
What is money earned by a business?
By something but agree to pay later.
What is buy on account?
Expense & Revenue accounts are known as this.
What are temporary accounts?
Writing a check takes money from this account.
What is Cash in bank?
The left side of a T-account.
What is a credit?
Office Equipment: Classification
What is an Asset?
Accounts Recievable: Classification
What is an Asset?
Debit side of the T-account.
What is Left side of a T-account?
Account Payable: Classification
What is a Liability?
Your business agrees to pay them later.
What is Accounts Payable (A/P)?
Owner's Equity increases.
What is a credit or Right side of a T-account?
An owner takes money from the business for personal use.
What is a Withdrawal?
Assets, Liabilities, & Owner's Equity accounts are known as these types of accounts.
What are permanent accounts?
Assets=Liabilities+Owner's Equity
What is the accounting equation?
Cash In Bank: Classification.
What is Asset?