Accounting Equation
Vocabulary 1
Vocabulary 2
Classifying
Transaction Change
100
Assets = Liabilities + Owner's Equity
What is the Accounting Equation
100
Planning, recording, analyzing, and interpreting financial information.
What is accounting?
100
A business activity that changes assets, liabilities, or owner's equity.
What is transaction?
100
Cash
What is an asset?
100
Received cash from owner as an investment.
What is "+" for cash and "+" for owner's equity?
200
Left Side of the Accounting Equation
What side of the Accounting Equation is Asset on?
200
A planned process for providing financial information that will be useful to management.
What is accounting system?
200
A record summarizing all the information pertaining to a single item in the accounting equation.
What is account?
200
Owner's capital account
What is owner's equity?
200
Received cash from sales.
What is "+" for cash and "+" for owner's equity?
300
Right Side of the Accounting Equation
What side is Liabilities & Owner's Equity on?
300
Organized summaries of a business's financial activities.
What is accounting needs?
300
The name given to an account.
What is account title?
300
Steward Supply Company
What is Liability?
300
Paid cash for rent.
What is "-" for cash and "-" for owner's equity?
400
Owner's Equity
What is the amount remaining after subtracting liabilities from assets?
400
Financial reports that summarize the financial condition and operations of a business.
What is financial statement?
400
The account used to summarize the owner's equity in a business.
What is capital?
400
Prepaid Insurance
What is an Asset?
400
Bought supplies on account from Maxwell Company.
What is "+" for supplies and "+" for liabilities?
500
The total amount on the left is equaled to the total amount on the right.
What is the accounting equation being balanced?
500
A business that performs an activity for a fee.
What is a service business?
500
A sale for which cash will be received at a later date.
What is sale on account?
500
Anything owed
What is Liability?
500
Paid cash for supplies.
What is "-" from cash and "+" for supplies?
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