Chart your Accounts
A group of accounts.
What is a ledger?
Assets = Liabilities + Owner's Equity
What is the accounting equation?
Items that are of value to the business.
What are assets?
What is a T-Chart?
Accounts that are affected when a business receives cash from a sale.
What is Cash and Sales?
This contains all accounts needed to prepare financial statements.
What is a general ledger?
Planning, recording, analyzing and interpreting financial information.
What is accounting?
An amount owed by the business.
What is a liability?
The amount recorded on the left side of the T-Chart.
What is a debit?
Accounts affected when a business pays cash to the owner for personal use.
What is Drawing & Cas?
The number assigned to an account.
What is an account number?
A business that performs an activity for a fee?
What is a service business?
The amount used to summarize the owner's equity in a business?
What is capital?
The side of the account that will always increase?
What is the normal balance?
What is Accounts Receivable (AR) & Sales?
The procedure for arranging accounts in a general ledger.
What is file maintenance?
A business owned by one person.
What is a sole proprietorship?
The account used to keep track of what a business needs to collect from customers that purchased on account?
What is accounts receivable?
Account that will be used to keep track of income earned by the business.
What is the Sales Account?
Accounts affected when you purchase supplies on account.
What are Supplies and Accounts Payable (AP)?
Transferring information from a journal entry to a ledger account.
What is posting?
Reports that summarize the financial condition and operation of the business.
What are financial statements?
A sale for which cash will be received at a later date.
What is a sale on account?
The amount recorded on the right side of the T-Chart.
What is a credit?
Journal columns used to record receiving cash from sales?
What are Cash Debit and Sales Credit?