Accounting 101
The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.
What is accounting?
These are items owned that have monetary value
What are assets?
Shows the results of a business's operations for a specific period of time.
What is an Income Statement?
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
Name the 7 users of the Financial Information?
What is: Owners and managers, suppliers, banks, tax authorities, regulatory agencies, and investors.
Report the changes that occurred in the owner's financial interest during the reporting period.
What is a State of Owner's Equity?
These represent the types of business organizations that use accounting.
1)sole proprietorships, 2)partnerships and 3)corporations?
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
Reports a company's assets, liabilities, and owner's equity at a specific point in time
What is a Balance Sheet?
When you buy something and agree to pay for it later
What is Credit?
Accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits
Any financial event that changes the resources of a firm.
business transaction
___Results when revenue is greater than the expenses for the period
What is a Net Income/Profit?
The relationship between assets and liabilities plus owners equity is called?
What is Fundamental accounting equation.
Funds are taken out of a business by the owners for personal use.
What is withdrawals?
A result of a net income or loss will affect this account
What is the Owner's Equity?