Chapter 1 Vocab
Anything of value that is owned.
What is Asset?
An amount recorded on the left side of an account.
What is Debit?
A form of recording transactions in chronological order.
What is journal?
A concept that is applied when revenue is recorded at the time of goods and services being sold.
What is Realization Of Revenue?
Paid Cash for supplies.$165.
Supplies gets debited for $165 and Cash gets credited for $165
An amount owed.
What is Liability?
An amount recorded on the right side of an account.
What is Credit?
Recording transactions in a journal.
What is Journalizing
A concept that is applied when a business records all financial activities using a standard unit of measurement.
What is Unit Of Measurement?
Paid Cash for Insurance.$900.
Prepaid Insurance gets debited for $900 and Cash gets credited for $900
The process of planning, recording, analyzing, and interpreting financial information.
What is Accounting?
An accounting device used to analyze transactions.
What is T account?
A business paper from which information for a journal entry is obtained.
What is Source Document?
A concept that is applied when a source document is prepared for a transaction.
What is Objective Evidence?
Sold Services on Account to Main Street Services.$500.
Accounts Receivable- Main Street Services gets debited for $500 and Sales gets credited for $500
The difference between assets and liabilities.
What is Equity?
The side of an account that is increased.
What is Normal Balance?
Information for each transaction recorded in a journal.
What is Entry?
Bought supplies on account from Canyon Office Supplies. $220.
Supplies gets debited for $220 and Accounts Payable- Canyon Office Supplies gets credited for $220
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is Owner's Equity?
Amount to be paid in the future for services and good that are already acquired.
What is Accounts Payable?
A business form giving acknowledgement for cash received.
What is Receipt?
January 10. Received cash from sales, $1,100.00. Calculator Tape No. 10.
Write the date Jan.10, Write Cash in the debit column and $1100 for the amount debited, Write Sales in the credit column and $1100 for the amount credited, Write the source document T10.