Basic Terms
One owner.
What is a sole proprietorship?
Accounting equation.
What is:
Assets = Liabilities + Owners Equity?
Income earned from the sale of goods or services?
What is a revenue?
A business exist separate for the owner’s personal finances.
What is accounting principle of business entity?
More than one owner.
What is a partnerswhip?
Something owned by a company.
What is an asset?
The price paid for goods and services used to operate a business.
What is an expense?
A uniform period of time for reporting business financial information.
What is an accounting period?
Owned by stockholders.
What is a corporation?
Something owed.
What is a liability?
Left side of a transaction.
What is a debit?
Assumption that a business will survive and operate indefinitely.
What is the accounting assumption of going concern?
A person who starts his own business.
What is an entrepreneur?
An event that changes either an increase or decrease in an account.
What is a transaction?
Increasing side of a liability.
Which side is the credit side?
Two accounts.
Every transaction involves at least how many accounts?
Money invested by the owner.
What is capital?
What is an investment?
Claim to the assets of a company.
What is equity?
Money used for personal use by the owner.
What is a withdrawal?
Debits = Credits.
What is the equity of accounts?