Financial Position
Everything a business owns that has economic value (you can attach a dollar value to it)
Assets
The balance sheet is created at the end of an _______________ period.
Accounting
The balance of an invoice that needs to be payed to another company would be recorded in...
Accounts Payable
If I pay off part of a loan, is the "Bank Loan" account going to go up or down?
down
_________ is the MOST liquid asset
Cash
The balance on a credit card is an example of this.
Liability
If a business has 500 in assets, and 400 in liabilities, what is the owner's equity?
100
A record of transactions that involve similar assets or liabilities in a business.
Account
Examples of possible source documents
Invoice, Receipt, Legal Contract
GAAP stands for
Generally Accepted Accounting Principles
The value that is owed by the business to the business owner(s)
Equity
Listed on the right hand side of the balance sheet.
Liabilities , then equity
Example of accounts found on the right side of a Balance Sheet
Accounts Payable, Wages Payable, Bank Loan, Credit Card Debt etc..
A process that changes the financial position, or balance sheet, of a business.
A transaction.
The accounting principles used by Canada and the EU
If a business is a corporation, then the equity held in the business is not called "Owner's Equity", it is called. . .
Shareholder's Equity
Found at the very top of any Balance sheet
The Business Entities' Name
Account that includes any Property and Equipment the business may own.
PPE
The words used to describe the two sided nature of every transaction.
The principle stating that all recorded transactions should be backed up by objective evidence.
Objectivity Principle
The core principle in accounting that explains the accounting equation.
The stuff a business owns = the stuff a business owes.
The one thing every Balance sheet MUST do.
BALANCE: Assets must equal assets + liabilities
Term for the SUM of all transactions that have been recorded in a given account.
Balance
A business has sold goods for cash, and made money, What 3 accounts should be affected.
Cash, Inventory, Owner's Equity
Software used for bookeeping and creating accounting systems efficient and quick.
EXCEL