Vocabulary
Planning, recording, analyzing, and interpreting financial information
What is Accounting?
Assets = ____________ + _____________
What is Liabilities + Owners Equity
The owner invests money in the business
What is Increase cash, Increase capital?
The first 3 lines -
Bryan McCabe, owner of McCable Auto parts creates a balance sheet on September 30, 2024.
What is:
McCabe Auto Parts
Balance Sheet
September 30, 2024
A business that performs a service for a fee
What is a Service Business?
Organized summaries of a business’s financial activities
What are accounting records?
If you increase on the left side, you must ___________ on the right side
What is Increase?
Paid cash for supplies
What is decrease cash, decrease supplies?
The titles on the left side of the balance sheet
What is Assets?
A business owned by one person
What is a Proprietorship (Sole Proprietorship) ?
Anything of Value that is owned
What is an Asset?
If you exchange one asset for another you must ________ one and _________ the other
What is Increase , decrease (or vice versa)
Paid cash for insurance
What is decrease cash, increase prepaid insurance?
The titles on the right side of the balance sheet
What are liabilities and Owners Equity?
A record summarizing all the information pertaining to a single item in the accounting equation
What is an Account?
An amount owed by a business
What is a Liability?
The accounting equation must always be _______________.
What is Balanced?
Bought supplies on account from Nike
What is Increase supplies, increase Accounts payable - Nike?
The total assets and the total liabilities and Owners equity must be ...
What is balanced?
Applied when business transactions are stated in numbers that have common values
What is Unit of Measurement?
Applied when a business’s financial information is recorded and reported separately from the owner’s personal financial information
What is Business Entity?
In accounting, we use a ____________________ system. This means that every transaction affects 2 accounts.
What is Double Entry Accounting?
Paid cash on account to Nike
What is decrease cash, decrease accounts payable Nike?
The only account listed under Owners Equity
What is the Capital Account?
The amount remaining after the value of all liabilities is subtracted from the value of all assets
What is Owners Equity?