Classifications
Cash, Receivables, Office Supplies, Equipment and copyrights
What are assets
The owner's investment, or equity in a business enterprise
What is Capital
The right side of the T Account
What is Credit
The official list of account titles to be used to record transactions
What is Chart of Accounts
A financial statement showing the results of either Net Income or Net Loss
What is the Income Statement
Rent, advertising, wages, and interest
What are expenses
The concept by which a business stands alone
What is the separate entity concept
Side of T Account used the increase Assets, Drawing, and Expenses
What is Debit Side
The system by which each business transaction is recorded in at least two accounts and the accounting equation is kept in balance
What is double-entry accounting
The order in which formal statements are prepared
What is Income Statement, Owner's Equity Statement, and Balance Sheet
Fees, rent, merchandise sales, and interest
What is revenue
Assets = Liabilities + Owner's Equity
What is the Fundamental Accounting Equation
The plus side of the T Account
What is the Normal Balance
A liability account used for short term obligations or charge accounts, usually due in 30 days
What is Accounts Payable
What classifications are presented on the Balance Sheet
What are assets, liabilities and owner's equity
Business loans, mortgage, debts, and payable
What are liabilities
One to whom money is owed
What is Creditor
The totals of each side of the T Account
What is footing
The present worth of an asset or the amount that would be received if the asset were to be sold
What is fair market value
The result when total expenses exceed total revenues over a period of time
What is a Net Loss
The owner's right to or investment in the business
What is Owner's Equity
An accounting system in which transactions are recorded by hand
What is manual accounting system
Credits signify increases in what classifications
Liabilities, Capital, and Revenue
The categories under the Assets, Liabilities, and Owner's Equity Headings
What are accounts
A list of all account balances to prove that the total of all debits balances equal the total of credits balances
What is a Trial Balance