Key Terms
What is the basic accounting equation?
assets=liabilities + owner's equity
This is the largest continent by area
Asia
double-entry accounting system
A system in which both aspects/effects of a business transaction are recorded.
liabilities
What is the parts of a business that is owed to another party?
the effect of investing in a business by cash
Increase in Capital and
Increase in Cash
This country is known as the "Land of the Rising Sun."
Japan
Drawings
Cash or goods withdraw by the owner for personal or domestic use.
A business owned and operated by one person is called a
Sole proprietorship
Return of sold goods by customers to the business.
Sales Return/Return Inward/Return by Customer
Mount Kilimanjaro is located in this African country
Tanzania
the increase in the asset account is recorded by
What is debit?
The act of buying saleable goods in the business.
Purchases
financial statement for a specific date
What is balance sheet or net worth statement?
The Cold War mainly involved tensions between these two superpowers
USA and USSR
posting
What is the key term of transferring of journal entries to the ledger accounts?
the increase in expenses are recorded by
Debit
A person to whom money is owed
Creditor/Accounts Payable
The Taj Mahal was built by this Mughal emperor
Shah Jahan