Account Types
What is the definition of a Revenue account type?
Earned sales OR
value of products generated in the production process.
What is a Chart of Accounts?
The list of all account names used to record transactions in your organization.
What is a Liability?
Something you owe
Name one of the two accounts impacted when you earn cash sales at a farmer's market.
Cash and Revenue accounts
What is an Asset and one example of an asset?
Something you own.
Example: Tractor, land, etc.
What 2 account types are impacted when you pay your rent every month?
Expense = Rent expense is increased
Asset = Cash account is decreased
What is an example of an expense account type?
rent, supplies, insurance, gas, etc.
When should you set up your chart of accounts?
At the beginning of your business, before any transactions happen.
Also a good idea to get an accountant's help on this!
What is Owner's Equity?
What form should you model your Chart of Accounts after? (hint: this helps you be ready for future changes in your company)
Schedule F Tax Form