General Accounting
The process of planning, recording, analyzing an interpreting financial information.
What is Accounting?
The bottom line.
What is Net Income?
An amount owed.
What is a Liability?
The journal entry for a cash sale.
What is Debit Cash and Credit Sales?
Current assets divided by Current Liabilities.
What is the current ratio?
The fundamental accounting equation.
What is Assets = Liabilities + Owner's Equity?
The top line.
What is Revenue?
Anything of value that is owned.
What is an asset?
The journal entry for a sale on account.
What is Debit Accounts Receivable and Credit Sales?
Net Income divided by Average Total Assets.
What is Return on Investment (ROI)?
The side of the account that is increased.
What is the normal balance?
Profit calculation.
What is Revenue - Expenses?
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is Owner's Equity?
The journal entry for buying supplies on account.
What is Debit Supplies and Credit Accounts Payable?
The most often used measure of profitability.
What is Return on Sales?
The name for a group of accounts listed by type.
What is the General Ledger?
Expense used to summarize how much an asset has lost value during the time period.
What is Depreciation Expense?
Time period in which current assets will be converted to cash.
What is one year?
The journal entry for paying off a previous purchase on account.
What is Debit Accounts Payable and Credit Cash?
One word which describes a business's current ratio.
The recording of debit and credit parts to at least TWO accounts for each transaction.
What is double-entry accounting?
A sale for which payment will be made at a later date.
What is a sale on account?
The ratio that helps determine who a business finances it's assets.
What is the debt to equity ratio?
The journal entry for closing the Drawing account.
What is Debit Owner's Capital and Credit Drawing?
The common synonym for Return on Sales.
What is profit margin?