GAAP/TERMS
This is what GAAP stands for
What are generally accepted accounting principles?
These are items owned that have monetary value
What are assets?
In addition to an owner, these people also have claims against a company's assets
Who are creditors?
An entry to left side and entry to the right side
WHat is debit and credit?
Invested cash in your business.
What is Debit Cash and Credit Owner's Capital
This private sector group responsible for the creation of GAAP
What is the Financial Accounting Standards Board(FASB)?
A = L + OE
What is the Accounting Equation?
A bank loan would be listed under this category on the balance sheet.
What is the liabilities section?
a person who transforms ideas for products or services into real world businesses.
What is entrepreneur?
Bought Equipment on account.
What is Debit Equipment and credit Accounts Payable.
The effect on equity when an owner withdraws cash from the business
What is decreases?
The amount of liabilities if assets are $2,000 and owner's equity is $500
What is $1,500.
a brief written message that describes a transaction that take place within a business.
What is a Memorandum?
an economic event that causes a change either in increase or decrease in assets, liabilities, or owner's equity
What is business Transactions
Wrote a check to electric company for the month's electric bill.
Creditors claims on assets
What is a liabilities?
This is the difference between total assets and total liabilities.
What is Owner's Equity?
What type of accounts are continuous form one accounting period to the next.
What are Permanent accounts
Each account classification is always on the side used to record the increases to the account
What is Normal Balance?
Billed a client, for grooming pet services.
What is debit Accounts Rec and Credit Grooming Revenue.
The effect on assets when a company receives cash on their accounts receivable.
What is no effect? One assets (cash) goes up and another asset (A/R) decreases.
Account on the balance sheet that represents the amount owed for purchasing supplies on credit
What is Accounts Payable?
The process of recording business transactions in a journal is
What is Journalizing?
Received a check from the customer on account for full payment.
What is Debit Cash and Credit Accounts Recievable.