General
Things of value owned by a business
What are Assets?
A list of all of the accounts a business uses.
What is a Chart of Accounts?
Shows proof of a transaction.
What is a Source Document?
What is a Debit?
Account debited when cash is paid to pay for advertising.
What is Advertising Expense?
Amounts that are owed to others
What are Liabilities?
Account used to record owner's taking of assets for personal use.
What is the Withdrawal Account?
Orders a bank to pay cash to someone.
What is a Check?
Right side of a T-Account
What is a Credit?
Account credited if a check is written.
What is the Cash Account?
Assets = Liabilities + Owner's Equity
What is the Accounting Equation?
Account that shows what a customer owes the business.
What is Accounts Receivable?
Source document that acknowledges cash that is received.
What is a receipt?
If rent is paid, side of the t-account recorded on.
What is the debit side.
Account debited if the owner takes $500 out of the checking account.
What is the Withdrawal Account?
Activity that changes assets, liabilities, and owner's equity.
What is a Transaction?
Account that shows what a business owes to a vendor.
What is Accounts Payable?
Shows items, quantities, prices of items sold.
What is an Invoice?
The side the T-Account is increased on.
What is the normal balance side?
Account credited if a customer ABC pays for services they purchased on account.
What is A/R ABC?
A person or business to whom a liability is owed.
Who is a creditor?
Summarizes the owner's equity in a business.
What is the capital account?
Used to record transactions in chronological order.
What is a Journal?
The difference between the increases and decreases in an account.
What is the account balance?
Account debited if a business makes a payment to Supply Mart for items bought on account.
What is A/P Supply Mart?