Accounting 1
what is land considered?
asset
when supplies are purchased with cash, what will happen to the cash account?
original cost of a fixed asset, less the accumulated depreciation expense is called the
book value
Business expenses are referred to as to saying...
"the cost of doing business"
what is a current asset
cash
What happens to the two accounts when you buy office equipment with cash?
cash account decreases, office equipment increasses
what is owners equity
the owner's investments to the business
Accounting entries involve a minimum of how many accounts?
two
what happens to the cash account when you sell a product and receive cash from your customer?
what does GAAP stand for
Generally Accepted Accounting Principles
the amount of money in an account is called the
account balance
Once an asset is no longer usable it will be sold at a value called this
Salvage Value
when cash is received, the cash account will change in what way
the cash account will increase
What does CD stand for?
Certificate of Deposit
When you sell your company vehicle ans receive cash, what happens to the asset account?
The asset account remains the same
what does FDIC stand for?
Federal Deposit Insurance Corporation
When a business is making money, What is that called?
a profit
what will usually cause the accounts payable to increase
purchasing a company printer and paying for it later
The loss in value of an asset over a period of time
depreciation
what is the main purpose of accounting?
When a business owner receives a loan from the bank, what will happen to his cash account?
The cash account will increase
The salary earned by an employee after all payroll deductions have been made
net pay
What is a business with only one owner called?
What does LLC stand for
Limited Liability Company
which account is the Accounts Receivable listed as?
An Asset