Items owned by a business that will provide future benefits. (What you got to work with)
What are Assets ?
100
A separate record used to summarize changes to Assets, Liabilities, and Owner's Equity.
What is an Account?
100
The amount a business charges customers for products sold or services performed. (What you get paid for what you do).
What are Revenues?
100
Assets = Liabilities + Owner's Equity
What is the Accounting Equation?
100
This account is used to record the payment of the telephone bill. (Duh).
What is the Telephone Expense Account?
200
Something owed to another business entity. (What you owe).
What are Liabilities?
200
The account used most often when recording business transactions.
What is Cash ?
200
Decreases in assets or increases in liabilities spent in an effort to produce Revenues. (What you spend to run your business ; like Rent, Salaries, Utilities).
What are Expenses?
200
The rule that all transactions must be recorded in at least two accounts. (Hint - Chapter 3 page 51)
What is Double Entry Accounting?
200
The account type of any account ending with the word Expense. (Duh)
***Daily Double***
What is an Expense Account?
300
The amount by which business assets exceed business liabilities. (What you got minus what you owe)
What is Owner's Equity?
300
The Cash account in accounting really refers to this.
What is the checking account?
300
Reports the profitability of business operations for a specific period of time. (The financial report that tells you whether you made any money or not).
What is an Income Statement?
300
If you pay out money your Cash account goes down. (Duh)
What is common sense?
300
The account type of any account with a title ending with Payable.
What is a Liability?
400
A separate record used to record changes as business transactions occur.
***Daily Double***
What is an Account?
400
The Account used to track changes in Owner's Equity.
What is the Capital Account?
400
Records the changes in the owner's Capital account for a period of time. (What you started with plus what you made (or lost) minus what you drew out).
***Daily Double***
What is the Statement of Owner's Equity?
400
If you get money your Cash account goes up. (Duh)
What is more common sense?
400
When a transaction has the word paid or a check number in it this probably happened.
What is a real big hint that you PAID out money?
500
An economic event (like buying supplies or paying a bill) that has a direct impact on the business.
What is a business transaction?
500
These accounts always contain the business owner's name in their titles.
What are the Capital Account and the Drawing Account?
500
Reports the Assets, the Liabilities, and the Owner's Equity (Capital) of a business on a specific date. (How much you've got minus how much you owe equals what's left).
What is the Balance Sheet?
500
Common sense says that if your Cash account goes down, this probably happened.
What is you PAID something?
500
When a business transaction has the words "Received a check" or "Received payment" it probably means this.