Accounting 1
what is land considered?
asset
when supplies are purchased with cash, what will happen to the cash account?
Sales return is also called as
Return Inward
Business expenses are recorded in which financial statements
Income statement
what is a current asset?
Any asset that can be turned to cash quickly or can be liquified quickly.
What happens to the two accounts when you buy office equipment with cash?
cash account decreases, office equipment increasses
what is capital
the owner's investments to the business or anything the owner brings into the business.
Accounting entries involve a minimum of how many accounts?
two
what happens to the cash account when you sell a product and receive cash from your customer?
the cash account increases
Further introduction of capital will_____________the capital account
Increase
money paid to deliver goods to customers
carriage outwards
Transportation charges on purchases
Carriage Inward
when cash is received, the cash account will change in what way
the cash account will increase
What does return outwards also called
Purchases returns
When you sell your company vehicle and receive cash, what happens to the assets side?
The assets side remains the same
B o/d full form?
Bank Over Draft
When a business earns money, What is that called?
Income
If trader is liable to pay it's credit supplier, the supplier is called as
Office equipment taken for personal use is called as
Drawings / Goods for Own Use
What are the two main financial statements that a business constructs?
1. Income Statement
2. Statement of Financial Position
When a business owner receives a loan from the bank, what will happen to his cash account?
The bank account will increase
Payment made to employees is called as
wages and salary
What is a business with two or more owners called?
Partnership
Where will you record Goodwill in statement of financial position
Assets side
what is Trade Receivable listed as?
An Asset