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Terms
Assets
Liabilities
Owner's Equity
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100

Definition - the difference between personal assets and personal liabilities.

What is equity

100

If two asset accounts are changed in a transaction, there must be an increase and a _____________.

What is a decrease.

100

Liabilities are on which side of the accounting equation?

What are the right side.

100
Identify something that will decrease the owner's equity as a result of operating the business.

What is an expense

100
Fill in the blank -

Total ____________ are the amount the owner has invested in the business.

What are ASSETS

200
Definition - financial reports that summarize the financial conditions and operations of the business.

What are financial statements

200

Identify which asset account(s) is affected with this transaction - 

Paid cash for insurance, $6000.

What is Cash and Prepaid Insurance

200

State the accounting equation.

Assets = Liabilities + Owner's Equity

200

Financial rights to the assets of the business.

What are equities

200

Identify what classification supplies is.

What is an ASSET

300

Definition - the account used to summarize the owner's equity in the business.

What is capital account

300

Identify the affect on the asset account - 

Sold services to Yardley Enterprises, $2,200.

What is - Cash account increases.

300

Identify the difference between a liability and an expense.

Liability is a debt that is owed

Expense is required for day to day operations of the business.

300
An increase in the owner's equity resulting from the operation of a business.

What is revenue

300

Identify what classification an expense is.

What is Owner's Equity

400

Definition - a business activity that changes assets, liabilities, or owner's equity.

what is transaction

400

A sale for which cash will be received at a later date is known as - 

What is a sale on account

400

Identify the two accounts that are affected and how they are affected with the following transaction -

Paid cash on account to Yardley Enterprises, $759.

Cash - Decreases

Accts Payable, Yardley Enterprises - Decreases

400

The amount remaining after the value of all liabilities is subtracted from the value of all assets

What is owner's equity

400

GAAP stands for - 

What is Generally Accepted Accounting Principles.
500

Definition - a formal report that shows what an individual owns, what an individual owes, and the difference between the two.

What is a net worth statement

500

Identify which accounts are affected and how they are affected with the following transaction -

Received cash on account from Yardley Enterprises, $1650.

Cash + 1650

Accts Receivable - 1650

500
Identify the equation to determine an individual's personal net worth.

Total Assets - Total Liabilities = Personal Net Worth

500

When the owner takes out assets for personal use, this is known as 

What is withdrawals

500

Planning, recording, analyzing, and interpreting financial information is known as - 

What is Accounting