What Is Accounting?
The Accounting Equation
Business Activities Change the A.E.
Transactions & Owner's Equity
Analyzing Transactions
100
A business owned by one person.
What is a proprietorship
100
Items such as cash and supplies.
What are assets.
100
Any business activity that changes assets, liabilities, or owner's equity.
What is a transaction.
100
An increase in owner's equity resulting from the operation of a busines.
What is revenue
100
Assets are on this side.
What is left side.
200
Planning, recording, analyzing, and interpreting financial information.
What is accounting
200
Financial rights to the assets of a business.
What are equities.
200
A record summarizing all the information pertaining to a single item in the accounting equation.
What is an account.
200
A sale for which cash will be received at a later date.
What is a sale on account.
200
An accounting devise used to analyze transaction.
What is a T account.
300
A business that performs an activity for a fee.
What is service business
300
An amount owed by a business.
What is a liability.
300
The name given to an account.
What is an account title.
300
A decrease in owner's equity resulting from the operation of a business.
What is an expense.
300
Those recorded on the left side.
What are debits.
400
Organized summaries of a business's financial activities.
What are accounting records.
400
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is owner's equitiy.
400
The amount in an account.
What is the account balance.
400
Assets taken out of a business for the owner's personal use.
What are withdrawals.
400
The side of the account that is increased has this type of balance.
What is a normal balance.
500
A planned process for providing fnancial informaion that will be useful to management.
What is an accounting system.
500
This shows the relationship among assets, liabilities, and owner's equity.
What is the accounting equation.
500
The account used to summarize the owner's equity in a business.
What is capital.
500
Expense transactions do this to owner's equity.
What is decreases
500
Owner's capital account has this type of balance.
What is a normal credit balance.
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