Accounting

Debit/Credit

100

You bought $100 worth of supplies. Your supplies account becomes ____?

Debited 

200

Your 2,500 computer broker after you spilled water on it. What happens to your equipment account?

Credited $2,500

300

You paid back 100 out of the 500 you owed to Your father. What happens to your A/P account?

Debited $100

400

You bought a TV, a new laptop and new shoes on account for $3 500. What account will be credited $3 500?

Accounts Receivable account would be credited

500

If I were to purchase a car using cash, would my cash account be credited or debited?

Credited

Balance Sheet

100

Is equipment a long term asset or a current asset?

Long term assets

200

Do your "total assets" and "total liabilities and equity" on a balance sheet have to equal the same number?

Yes

300

On a balance sheet where do you get the opening balance number from?

You get the number from the owner's capital

400

Which side of the balance sheet do totals go?

Right coloum

500

Is HST Payable and HST Recoverable considerd an asset or liability on the balance sheet?

Liability

True or Flase

100

If I sell an asset such as equipment for more than I bought it, will the equipment account be debited?

False

200

The capital account should ALWAYS be debited

Flase

300

If the owner removes supplies from the business for personal use you would CREDIT the capital account.

True

400

When we pay wages to an employee, we debit to cash and credit Wages expenses

False

500

When a customer of ours makes a purchase on account you would debit the accounts payable

Flase

Income Statment

100

What accounts are involved in an income statement?

Revenues and expenses

200

How do you calculate net income/net loss?

Subtract total expenses to total revenue

300

Which side of the income statement do totals go?

The right side

400

What comes first when writing your income statement, revenues or expenses?

Revenues

500

Should every number on your income statement have a dollar sign?

No

Definitions

100

Debts that are owed by a business is what type of liability account?

Accounts Payable

200

Assets - Liabilities =

Owner's Equity

300

An item that is paid for in advance, but one where the benefits extend to the future. A common example is insurance

Prepaid Insurance

400

An informal business paper used to organize and plan information for the financial statements. It is informal because none of the data it contains will be directly posted to accounts.

A worksheet

500

What method is dividing the net cost of a long term asset equally over it useful lifetime to calculate it’s depreciation

Straight line method