Accounting 101
Generally Accepted Accounting Principles
What is GAAP?
Activity that changes assets, liabilities, or owner's equity.
What is a transaction?
An amount recorded on the right side of an account.
What is credit?
Amounts to be received in the future due to the sale of goods or services.
What is Accounts Receivable?
Any business activity that changes assets, liabilities or owner's equity.
What is transaction?
A sale for which payment will be received at a later date.
What is Sale on Account?
The side of the account that is increased.
What is Normal Balance?
A business form ordering a bank to pay cash from a bank account.
Who is check?
The name given to an account.
What is Account Title?
Must always have equal amounts on each side.
What is an Accounting Equation?
Assets taken from the business for the owner's personal use.
What is withdrawal?
What are Chart of Accounts?
A form describing the goods or services sold, the quantity, the price, and the terms of sale.
Who is Invoice?
A person or business to to whom a liability is owed.
What is creditor?
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
What is an Account?
An accounting device used to analyze transactions.
What is T Account?
Amounts to be paid in the future for goods or services already acquired.
What is Accounts Payable?
A business form giving written acknowledgement for cash received.
What is Receipt?
The deduction the government takes from your gross pay.
What are taxes?
The difference between the increases and decreases in an account.
What is Account Balance?
What is debit?
A form for recording transactions in chronological order.
What is Journal?
A form on which a brief message is written to describe a transaction.
What is Memorandum?