Accounting 1
what is land considered?
asset
when supplies are purchased with cash, what will happen to the cash account?
Sales return is also called as
Return Inward
Business expenses are recorded in which financial statements
Income statement
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?
the cash account increases
Further introduction of capital will_____________the capital account
Increase
the amount of money in an account is called the
account balance
Transportation charges on purchases
Carriage Inward
when cash is received, the cash account will change in what way
the cash account will increase
What does return outward means?
Purchases return
When you sell your company vehicle ans receive cash, what happens to the asset account?
The asset account remains the same
BOD Full Form
Bank Over Draft
When a business is Earn money, What is that called?
Income
If trader is liable to pay it's credit supplier, the supplier is called as
Office equipment taken for personal use is called as
Drawings
what is the main purpose of accounting?
to make financial statements
When a business owner receives a loan from the bank, what will happen to his cash account?
The cash account will increase
Payment made to employees is called as
wages and salary
What is a business with two or more owners called?
Partnership
Where will you record patent in statement of financial position
Assets side
which account is the Accounts Receivable listed as?
An Asset