Debits & Credits
Assets, withdrawals and expenses have this kind of balance.
What is debit?
The assumption that the business will go on forever.
What is going concern?
Evidence that a transactionhas occured
What is a source document?
Step 0 to journalizing
What is the page number?
What is the date?
Owner's capital, liabilities and owner's equity have this kind of balance.
What is credit?
A period of time that an accounting report covers
What is an accounting period?
When you receive cash from a customer this source document is used
What is a receipt?
Step 1 to journalizing
What is the year, month and day?
The last step to posting
What is put the account numbers in the general journal?
The owner withdrew $100 cash for personal use. Do you debit or credit cash?
What is credit?
A business has a separate checking account from the owner's personal holdings
What is business entity?
When paying for an expense or buying an asset with cash, this type of source document is used
What is a check?
Step 2 and step 3 to journalizing
What is the debit account and debit amount?
The post reference columns are used for this
What are Journal and page # and account numbers?
The owner invested $10,000 cash in bank. What do you do to cash?
What is debit?
Revenue is recognized on the date it is earned even if cash has not been received
What is revenue recognition?
A source document that has a dual purpose to the sellar and buyer.
What is an invoice?
What is the credit account and amount?
When the existing account balance is a debit and the amount posted is a debit you do this
What is add?
What is debits must equal credits?
Whe you match revenue with the expenses for the same period of time.
What is the matching principle?
When you make an investment of cash or an asset or withdraw an asset, this type of source document is used?
What is a memorandum?
last step to journalizing
What it the source document?
When the existing account balance is a credit and the amount posted is a debit, you do this.
What is subtract?