Vocab
A business paper from which information is obtained for a journal entry
What is a source document?
The number that asset accounts start with
What is one?
What is accounts receivable?
Supplies
What is an asset?
Assets = Liabilities + Owners equity
What is the accounting equation?
A form for recording transactions in chronological order.
What is a journal?
The number given to a new expense account that falls between 550 misc. expense and 560 postage expense.
What is 555?
A company just bought new insurance.
What is prepaid insurance?
Notes Payable
What is a liability?
The left side of the T-Account.
What is the debit side?
A ledger that contains all accounts needed to prepare financial statements.
What is a general ledger?
The number given to a new water expense account that falls after that last expense account 570 supplies
What is 580?
The owner just withdrew funds from the company.
What is Drawing?
The owner's Drawing account.
What is owners equity?
Columns in this journal include date, account title, Doc. No., Post Ref, Debit & Credit.
What is a general journal?
An incorrect journal entry should be corrected with an additional journal entry
What is a correcting entry?
The number that capital accounts start with
What is 3?
Someone just bought my product I made!
What is sales?
Accounts Payable
What is a liability?
The side of the account that is increased.
What is the normal balance?
Transferring information from a journal entry to a ledger account.
What is posting?
What number revenue accounts start with
What is 4?
What is accounts payable?
The owners initial investment.
What is owners equity?
The cost of goods or services used to operate a business.
What is an expense?