Account Classifications
Cash classification
What is an asset?
Analyzing transactions with T-accounts
What is step 2?
What is Debit to Cash and Credit to Owner, Capital?
A person who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports.
What is an accountant?
The first financial that is prepared
What is an income statement?
Accounts payable classification
What is a liability?
Proving the equality of debits and credits in the general ledger
What is step 5?
Business does work and receives cash
What is debit to cash and credit to fees earned?
A subdivision under assets, liabilities, or owner's equity that summarizes changes and shows a balance.
What is an account?
The last financial statement prepared
What is Balance Sheet?
Owner, Capital classification
What is equity?
Journalizing transactions
What is step 3 in the accounting cycle?
Business does work and receives a promise to pay in 30 days.
What is debit to accounts receivable and credit to fees earned?
The time period covered by an accounting report.
What is an accounting period?
What is a Balance Sheet?
Accounts Receivable classification
What is asset?
Posting transactions from the journal to the ledger
What is step 4 in the accounting cycle?
Bought supplies on account.
What is a debit to supplies and a credit to accounts payable?
Property or items of value owned by a business
What are assets?
The financial statement that recalculates worth.
What is the Statement of Changes in Owner's Equity?
Owner, withdrawals classification
What is contra-equity?
Preparing financials
What is step 7 in the accounting cycle?
Business pays off debt.
What is debit to Accounts Payable and credit to cash?
An accounting period that begins on January 1 and goes through December 31
What is calendar year?
The financial that reports the balances in the permanent accounts on a specific date.
What is the Balance Sheet?