The type of accounts recorded on the right side of the balance sheet
What are liabilities and owners equity accounts?
100
!! DAILY DOUBLE !!
Systematic check of accounting records and procedures by an accountant.
What is an audit?
100
Proof of the mathematical accuracy of the ledger.
What is a trial balance?
100
An increase to the owner’s equity for the period.
What is net income?
200
The order in which assets that last a short time are listed on the balance sheet.
What is liquidity order?
200
!! DAILY DOUBLE!!
List of ledger account balances
What is a trial balance?
200
An entry that has more than one debit or more than one credit.
What is a compound entry?
200
500-599
What account number does expense accounts belong in?
200
Payments that are made in advance.
What are prepaid expenses?
300
Assets are shown on the balance sheet at the cost of their acquisition or construction.
What is the cost principle?
300
Account, debit, credit.
What are the 3 column headings in a trial balance?
300
A list of the names and account numbers of all of the accounts in a ledger.
What is a chart of accounts?
300
The business form that serves as the original source of information that a transaction occured.
What is a source document?
300
Accounts payable, taxes payable, salaries payable, and loans payable.
What are some examples of current liabilities?
400
Each business is to be considered a separate entity and that the financial data for the business by kept separate from the owner’s personal financial data.
What is the business entity principle?
400
The debit amount equals to the credit amount for each transaction
What is double-entry accounting?
400
200-299
What account number does the Liability account fall under?
400
Prepared for all cash saled by a business
What is a cash sales slip?
400
A document used to prepare the financial statements at the end of the fiscal period.
What is a work sheet?
500
The order in which liabilities are listed on the balance sheet. Liabilities are to be listed in the order they are to be repaid.
What is maturity date?
500
1.Add up the debit side,
2. Add up the credit side,
3. Subtract the smaller amount from the larger and place the answer on the larger side of the account.
What are the 3 steps in determining account balances?
500
A period of time covered by the financial statements.
What is the accounting period?
500
!! DAILY DOUBLE !!
Objective evidence to support the value used to record transactions.
What does the principle of objectivity require?
500
A document that describes the changes is owner’s equity for the accounting period.