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Accounting Terms
Accounting Categories
Accounting Transactions
Accounting Calculations
Account Catergories
100
Merchandise for resale
What is purchases
100
Accounts Payable
What is liability
100
Purchased inventory on account
What is a debit to purchases, credit accounts payable.
100
Assets - Liabilities
What is Owner's Equity
100
Land
What is asset
200

Non-current assets are expected to be use to the business for more than one year

What are non-current assets?

200

Give an example of an asset

land

200
Returned defective merchandise to seller of purchases on account
What is A/P debit/ Purchases Returns and Allowances credit.
200
Revenue less expenses, where expenses exceed revenue
What is Net loss
200
Commission
What is Expense
300
form used in business to place an order for the buying of goods from a seller
What is Purchase order
300

credit

What is the normal balance of a contra-asset

300
Paid invoice due with cash within 10 days to receive discount
What is A/P debit, Purchase discount credit, and cash credit.
300
Gross Profit less operating expenses
What is Net income/ Net loss
300
Inventory
What is asset
400
an account that records the cost of merchandise inventory used to make a sale
What is cost of goods sold
400

debit

Expenses increase on which side
400
Paid invoice due with cash
What is debit A/P, credit cash
400
Purchases less Purchases Returns and Allowances less Purchases discount
What is Net Purchases
400
Unearned Revenue
What is a liability
500

debts that are not expected to be paid

What are irrecoverable debts

500

insurance

What is an example of an expense 

500
Purchased merchandise on account plus frieght
What is debit purchases, Freight debit, A/P credit
500
Revenues less cost of goods sold
What is Gross Profit
500
Distribution/ Draw Account
What is Owner's Equity