Transactions
Purchase new physiotherapy equipment for $500 cash
Cash decrease, Supplies increase
What is the definition of Assets?
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash.
T or F
You'll need to have Trial Balance before working on Balance Sheet
True
Definition of Profit
difference in amounts received and the amount paid for the inputs to provide the service
Owner invested an additional $800 cash in the business
Cash increase, Capital increase
What is the definition of Equities?
In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets.
What side is Drawing on
Always LEFT SIDE
Definition of Merchandising Business
this type of business sells products they purchase from other businesses to customers
Purchased office supplies for $750 on credit (payment is due in 30 days)
Supplies increase, Accounts Payable increase
To calculate owner's equity
owner's equity = assets -liabilities
T or F
The balance sheet could sometimes be not balanced
F!
What is the annual report
presents financial information including financial statements, a management discussion and analysis section, notes, and an independent auditor's report; prepared by corporate management.
Made a regular $500 monthly mortgage payment
Cash decrease, Mortgage Payable decrease
What is a Balance Sheet
It is a financial statement that lists the assets, liabilities, and owner's equity at a specific date.
How many $ is there supposed to be in a Balance Sheet? State where is it.
5
Is there always net income or merchandise business?
NO
What is a transaction?
something of value is given -> something value is received
What is the purpose of Accounting?
The purpose of accounting is to provide financial information for decision-making.
Do assets need to be bold in a balance sheet?
NO