Ch. 1
Who is an accountant?
The account used to summarize the owner's equity in the business.
What is capital?
An increase in owner’s equity resulting from the operation of a business.
What is revenue?
An accounting device that is used to analyze transactions
What is a T account?
A form for recording transactions in chronological order
What is a journal?
A person that keeps an eye on the book by using investigative powers.
Who is an auditor?
A business owned by one person.
What is a proprietorship?
A decrease in owner’s equity resulting from the operation of a business
What is an expense?
An amount recorded on the left side of the T account.
What is a debit?
Information for each transaction recorded in a journal.
What is an entry?
Anything of value that is owned.
What is an asset?
Assets taken out of a business for the owner’s personal use
What is a withdrawal?
An amount recorded on the right side of a T account
What is credit?
A business form giving written acknowledgment for cash received.
What is a receipt?
A person keeps track of all the money a company receives and spends.
Who is a bookkeeper?
Accounting Equation
What is A+L=OE?
Normally withdrawn for owner's personal use.
What is cash?
A list of accounts used by a business.
Sales Credit, Cash Debit and Cash Credit.
What are special amount columns?
CPA
What is a Certified Public Accountant?
The amount in an account.
Decrease owner's equity.
What are transactions such as withdrawals and expenses?
A decrease in the asset side. (R or L)
What is the Right Side?
The recording of debit and credit parts of a transaction
What is a double-entry accounting?