Vocabulary
What does General Accepted Accounting Principals mean?
The standard and rules that accountants follow while recording and reporting financial activities are commonly referred to as Accepted Accounting Principals.
What are the three classifications used in the accounting equation?
What are Assets, Liabilities, and Owner's Equity?
Received cash from the owner as an investment.
Which account are affected?
What are
Account Title
Cash and Owner's Equity
Paid cash for supplies
Which accounts are affected?
What is
Cash and Supplies
Bought supplies on account from Canyon Office Supplies
Which accounts are affected
What is
Supplies and Accounts Payable Canyon Office Supplies
Owner's Equity
What you are worth after all liabilities and expenses are paid?
What is Accounting?
What is the process of planning, recording, analyzing and interpreting financial information?
Received cash from the owner as an investment.
How is each account classified?
What are
Cash is an Asset
Capital is an Asset
Paid cash for supplies
How is each account classified?
What is
Assets for both Cash and Supplies
Bought supplies on account from Canyon Office Supplies
How is each account classified?
What is
Supplies is Assets
Accounts Payable - Canyon Office Supplies
Accounting Equation
What is Assets + Liabilities = Owner's Equity?
What is an Accounting System?
What is a planned process designed to compile financial data?
Received cash from the owner as an investment.
How is each classification change?
What is
Cash Increased
Capital Increased
Paid cash for supplies
How is each classification changed?
What is
Cash is decreased
Supplies is increased
Bought supplies on account from Canyon Office Supplies
How is each classification changed
What is
Supplies Increase
Accounts Payable Canyon Office
What is an Asset?
What is a Sole Proprietor?
What is a single person who owns a business?
Received cash from the owner as an investment.
How is each amount entered in the account?
What are:
Assets (cash) is increased on the debit side
Owner's Equity is increased on the credit side
Paid cash for supplies
How is each amount entered in the account?
What is
the amount entered in cash ($$) has decreased and the amount entered in supplies has increased
Bought supplies on account from Canyon Office Supplies
How is each amount entered in the account?
What is
Assets increase on the debit side
Accounts Payable increase on the credit side
What is a Liability?
What is money you owe a person, business or corporation?
Give two examples of service businesses in your area.
What are:
Nail Salon
Lawn Care Service
Mailperson
Etc.
What must be done if a transaction increases the left side of the equation?
What is the right side must also increase?
How can a transaction affect only one side of the equation?
What is if one account is increased, another on the same side of the equation must be decreased by the same amount?
What does the term on account mean?
What paying the invoice (Bill) at a later date