The Language of Business
The fundamental accounting equation
What is Assets = Liabilities + Owners' Equity?
The first step in the accounting cycle
What is record journal entries?
The journal in which merchandise sales are recorded in
What is the Sales Journal?
The statement that shows the financial position of a business on a specific date
What is the Balance Sheet?
Cash increases when posting a
What is a Debit?
The journal in which merchandise purchases are recorded in
What is the Purchases Journal?
The statement that shows the net income or net loss for a business for a period of time
What is the Income Statement?
Owner's capital (equity) will be credited when this happens
What is Investment by Owner?
The subsidiary ledger that shows the balance that will be collected from a specific customer
What is the Accounts Receivable Subsidiary Ledger?
Account that shows the amount that will be collected from customers in the future
What is Accounts Receivable?
After closing the books, the accounts that still have a monetary balance on the post-close trial balance
What are permanent accounts?
The subsidiary ledger that shows the balance that the business owes to a specific supplier
What is the Accounts Payable Subsidiary Ledger?
Account used to record sales of goods and services
What is Sales Revenue?
The journal entry to record the purchase of equipment on account is this
What is Debit: Equipment, Credit: Notes Payable?
Journal that shows all other transactions
What is the General Journal?