In the Beginning
. . . . more
Transactions
"We're Doing Accounting"
Moving Right Along
100
Organized summaries of a business's financial activities.
What are accounting records?
100
The accounting equation.
What is ASSETS = LIABILITIES + OWNERS EQUITY?
100
Received cash from owner as an investment.
What is debit cash and credit owner’s equity?
100
A form for recording transactions in chronological order.
What is a journal?
100
A group of accounts.
What is a ledger?
200
Planning, recording, analyzing, and interpreting financial information.
What is accounting?
200
Anything of value that is owned.
What are assets?
200
Paid cash for supplies.
What is debit supplies and credit cash?
200
Memorandum, cash register tapes, receipt, sales invoice, check.
What are source documents?
200
A list of account titles and numbers showing the location of each account in a ledger.
What is a chart of accounts?
300
A business that performs an activity for a fee.
What is a service business?
300
An amount owed by a business.
What are liabilities?
300
Paid cash for insurance.
What is debit prepaid insurance and credit cash?
300
A journal amount column headed with an account title?
What is a special amount column?
300
The first digit of each account number.
What is the account location?
400
A business owned by one person.
What is a proprietorship or sole proprietorship?
400
Financial rights to the assets of a business.
What are equities?
400
Bought supplies on account.
What is debit supplies and credit account payable?
400
Determining that the amount of cash agrees with the accounting records.
What is proving cash?
400
Transferring information from a journal entry to a ledger account.
What is posting?
500
Financial reports that summarized the financial condition and operations of a business.
What are financial statements?
500
The amount remaining after the value of all liabilities is subtracted fro the value of all assets.
What is called owner's equity?
500
Sold services on account.
What is debit accounts receivable and credit sales?
500
These mean that the totals have been verified as correct.
What are double lines across column totals?
500
When an entry in a journal includes an amount in a general amount column the amount is posted this way.
What is individually?
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