The Accounting Equation
Assets = _____________ + Owner's Equity
What is Liabilties?
This account is used to show the money going in and out of your business
What is cash?
An accounting device used to analyze transactions into debit and credit parts
What is a T-Account?
Paid cash for supplies
What is Debit supplies & Credit Cash?
Amount to be paid in the future for goods or services already acquired
What is Accounts Payable?
If there is an increase on the left side, there must be a _______________ on the right side.
What is an increase?
This account type is used to show when someone owes you money?
What is accounts receivable?
Number of accounts changed in each transaction
What is two?
Received cash on account
What is Debit Cash & Credit Accounts Receivable?
Amount to be received at a future date for the sales of goods or services.
What is Accounts Receivable?
The Accounting Equation must always be _______________?
What is balanced?
This account is used to reflect the owner taking money out of the business for personal use.
What is drawing account?
Accounts used when an owner withdraw cash for personal use
What is Owner's Drawing account?
Paid cash for rent
What is Debit Rent Expense & Credit Cash?
Decreases in any asset account are shown on the _________ side
What is the credit side?
When you pay cash for supplies...
Decrease supplies, Decrease cash
This account is used whenever the business purchases insurance?
What is prepaid insurance?
The normal balance for all expense accounts
What is a Debit?
Received Cash from Sales
What is Debit Cash & Credit Sales?
Increases in an expense account are shown on a T-Accounts _________ side.
What is debit side?
What is an investment?
This type of account is used when your business owes money to another business or individual.
What is accounts payable?
List of accounts used by a business
What is a chart of accounts?
Bought supplies on Account
What is Debit supplies & Credit Accounts Payable?
CR & DR stand for
What is Credit Receipt & Debit Receipt