Identifying Terms
Chapter 2
Chapter 2
accounting device used to analyze transactions
Amounts to be paid in the future for services already acquired.
What is Accounts Payable?
An amount recorded on the left side of an account.
What is a Debit?
Received Cash from owner as an investment
Debit, Cash
Credit, Capital
An amount recorded on the right side of an account.
What is a credit?
Paid Cash for insurance
Credit, Cash
Amounts received in the future due to the sale of goods or services.
What is Accounts Receiveable?
Brought Supplies on account to City Supplies
Debit Supplies
Credit Accounts Payable
A list of accounts used by a business.
Paid Cash to owner for personal use
DEBIT Owner's Drawings
Credit Cash