Assets & Liabilities
This type of account represents amounts owed to the business.
What is an asset?
Revenue is earned when this occurs.
What is the performance obligation being met?
Dividends paid to stockholders do this to equity.
What is decrease equity?
Transactions are initially recorded in this.
What is a journal?
The balance sheet represents this equation.
What is Assets = Liabilities + Equity?
Paying this decreases liabilities and decreases assets.
What is an account payable?
Assets used up while generating revenue are called this.
What are expenses?
Owner investments increase this account.
What is contributed capital?
Transferring debits and credits from the journal to ledger accounts is called this.
What is posting?
The normal balance of revenue accounts is this.
What is credit?
Purchasing supplies on account affects these accounts.
What are liabilities and equity?
Excess of revenue over expenses is called this.
What is net income?
Dividends appear on this financial statement
What is the statement of stockholders’ equity?
The correct order of the accounting cycle is: journal → ? → statements.
What is ledger?
A debit to the cash account will do this.
What is increase cash?
Accounts payable is classified as this type of account.
Accounts payable is classified as this type of account.
Prepaid expenses are classified as this type of account.
What is an asset?
The dividends account is classified as this.
What is a contra-equity account?
A proof that debits equal credits is called this.
What is a trial balance?
Assets normally increase with this type of entry.
What is debit?
Collecting an account receivable affects total assets how?
What is “has no effect on total assets”?
Expense accounts increase with this type of entry.
What is a debit?
All stockholders' equity accounts increase with credits except this one.
What is dividends?
Even when a trial balance is in balance, this may still exist.
What are errors in individual accounts?
A journal entry may include more than two accounts as long as this condition is met.
What is debits equal credits?