debits and credits
Does a debit increase or decrease an asset account?
Increase
What is an Asset?
any resource with economic value, utility, or exchange potential that is owned or controlled by an individual, business, or organization with the expectation of future benefit
What does paid on account mean?
a customer or buyer has made a partial or full payment toward an existing balance or invoice recorded in the Accounts Receivable ledger.
Which financial statement shows revenue and expenses?
Income statement
What does Cahill say accounting is?
Fill in the blank
Which side of a T-account is the debit side?
The left side
What is a liability?
a legal responsibility, a financial debt or obligation, or a disadvantageous quality that causes a problem or drawback
What are the three main types of accounts in the accounting equation?
Assets, liabilities and owners equity
Which financial statement lists assets, liabilities, and equity?
Balance sheet
If Cahill owes money to someone, what category is that in?
Accounts payable
Which side of a T-account is the credit side?
The right side
What category would furniture for your store be?
Asset
Are assets an increase in debits, or credits?
debits
What is it called when revenue is greater than expenses?
Net income (profit)
If Cahill earns $6,000 in revenue. Pays $1,500 for rent, $800 for supplies, and $700 in utilities. What is his net income?
$3,000
What is money owed by a business called?
A liability
In what category is accounts payable in?
Liability
What is a draw?
An owner’s draw (or drawing) is a transaction where a business owner takes cash, goods, or other assets out of the company for personal use
What financial statement tracks cash coming in and going out?
Statement of cash flows
Cahill has $12,000 in assets and $5,000 in liabilities. He invests another $3,000 in cash. What is the new owners equity?
$10,000
What is the owners financial interest in the business called?
Owners equity
If a business uses a computer to make money and it breaks what category is it in?
An asset turns into an expense
What is a Balanced Transaction?
When the total amount of debits are equal to the total amount of credits.
If revenue is $15,000 and expenses are $9,000, what is the net income?
$6,000
What is Luke Brodsky´s nickname?
Dater