Accounting 101
An amount recorded on the left side of an account.
What is) Debit?
These are items owned that have monetary value
What are assets?
The number assigned to an account.
What is) ACCOUNT NUMBER
The cost of goods or services used to operate a business.
What is) EXPENSE
A business form ordering a bank to pay cash from a bank account.
What is) CHECK
An equation showing the relationship among assets, liabilities, and owner’s equity.
What is) ACCOUNTING EQUATION
It is an obligation to pay someone?
What is) LIABILITY
A form for recording transactions in chronological order.
What is) JOURNAL
Amounts to be received in the future due to the sale of goods or services.
What is) ACCOUNTS RECEIVABLE?
A business paper from which information is obtained for a journal entry.
What is) SOURCE DOCUMENT
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
This line on the balance sheet refers to money owed by a company to another company.
What is Accounts Payable?
The difference between the increases and decreases in an account.
What is) ACCOUNT BALANCE
An increase in equity resulting from the sale of goods or services.
What is) REVENUE
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What is) decreases and increases?
These are the 3 ways the fundamental accounting equation is stated.
What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities3) Assets-Owner's equity = Liabilities?
This is the difference between total assets and total liabilities.
What is Owner's Equity?
Transferring information from a journal entry to a ledger account.
What is) POSTING
This involves testing business records and procedures for accuracy.
What is auditing?
Someone who owns, operates, and takes the risk of a business venture.
Decreases both assets and owner’s equity
What is) OWNER'S WITHDRAWAL?
This system is used to analyze and record a transaction
What is a double-entry accounting?
Any business activity that changes assets, liabilities, or owner’s equity.
What is) TRANSACTION
An accounting device used to analyze transactions.
What is) T-ACCOUNT