Debits and Credits
The account that is credited when receiving cash from sale of goods or services
What is sales?
An amount recorded on the left side
What is a debit?
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
The account that is debited when selling services on account
Who is Accounts Receivable?
The side of an account that is increased
What is a normal balance?
What two accounts are affected when buying supplies on account?
Who are supplies and accounts payable?
The account that would be debited when buying supplies on account.
What is supplies?
Amounts to be paid in the future for services already acquired
What is Accounts Payable?
What is the accounting equation?
What is Assets = Liabilities + Owner's Equity
What account would be credited when receiving cash from owner?
What is Owners capital or Equity?
A list of accounts used by a business
What is chart of accounts?
What is the Owner's Equity account that revenue is posted to?
What is Sales?
What account is debited when receiving paying cash to the owner for personal use
What is Owners drawing?
An accounting device used to analyze transactions.
What is a T-account?
What is the normal balance for an expense account?
What is a debit?