Normal Balances
The normal balance of asset accounts.
What is debit?
These are items owned that have monetary value
What are assets?
This document is updated during the posting process.
What is the General Ledger?
What is Asset, Liability, Owners Capital
What is permanent accounts?
When a business buys supplies with cash, its cash ______, but its supplies ________
What decreases and increases?
The normal balance of expense accounts.
What is debit?
This is the fundamental accounting equation.
What is 1) Assets = Liabilities + Owner's Equity
2) Assets-Liabilities=Owner's Equity and
The two financial statements that show Net Income or Net Loss.
What are the Income Statement and Statement of Owner's Equity?
What is revenue, expenses, owner's withdrawals
What is temporary accounts?
This is when we list the debit account and credit account in a document.
What is journalizing?
The normal balance of the Income Summary account.
What is neither debit nor credit?
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is analyze a business transaction?
This type of account is used when you buy something and agree to pay for it later.
What is Accounts Payable?
This is Revenue - Expenses.
What is Net Income or Net Loss?
The normal balance of accounts payable.
What is credit?
This is the difference between total assets and total liabilities.
What is Owner's Equity?
The accounts that are reduced to a 0 balance during the closing process.
What are temporary accounts?
Items of value owned by a business
What is assets?
This document is where adjusting entries are made before the general journal entries.
What is the worksheet?
The normal balance of Owner's Capital account.
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
The accounts on a trial balance or post-closing trial balance.
Is a list of all accounts used by a business.
What is chart of accounts?
This is the financial statement that lists assets, liabilities, and owner's capital.
What is the Balance Sheet?