Assets
Assets are something you
OWN
Liabilities are something you
OWE
How is Owner's Equity calculated? Hint- Accounting Equation
Assets - Liabilities
Transactions are recorded in this order.
Date
A business that performs an activity for a fee
Service Business
What increases an Asset account?
Debit
What liability account is used to record a purchase of supplies to be paid at a later date.
What is accounts payable
What account is used when the owner invest money into the business?
Capital
A business paper form which information is obtained for an entry.
Source Document
What does it mean to be in balance?
Debits = Credits
If a customer does not pay at the time of purchase what asset account is affected.
Accounts Receivable
What increases an accounts payable?
Credit
What account is used to record money taken out of the business by the owner?
Drawing
A business form that orders the bank to pay
Check
An Account device used to analyze transactions.
T account
When a transaction affects 2 asset accounts, how are the asset account affected.
One is increased and one is decreased.
How is accounts payable affect when you pay what you owe
Debited
What is the normal balance of the Owner's Capital account?
Credit
A form that describes the items sold on account
Invoice or Sales Invoice
A list of all the accounts a business has.
Chart of Accounts
What order are assets listed in?
In order of liquidity.
What order are Accounts Payable listed in?
Alphabetical
What is the normal balance of the Owner's Drawing account?
Debit
A brief message to describe a transaction
Memorandum
The recording of debit and credit parts of a transactions is called?
Double-entry Accounting