Basic terms
something you owe.
What is Liability?
Asset=Liability+Owners equity
What is the Accounting equation?
you pay cash for rent.
What is the rent expense?
Everything on the right side of a T-Chart account.
What is debit?
Something you own.
What is Asset?
The price paid for good or services used to operate a business.
What is expense?
When you buys something on an account.
What is account payable?
Everything on the left side of the T-Chart account.
What is credit?
Something you owed.
What is owners equity?
An income earned from the sale of a good or service and results increase the owners equity.
What is revenue?
When someone buy something on an account from business.
What is revenue account?
the debit side for an asset
which side in the normal balance?
When the owner of the business takes out money from the business.
What is drawing/ withdraw?
Account is used to summarize the owners equity in the business.
What is capital?
When the business buys supplies.
What is an asset?
liability, revenue, and owner's equity capital accounts
When you sale merchandise.
What is revenue.
The accounting equation must always be balanced, and for that reason the accounting system is also called.
what is a dual entry system?
Premiums for insurance that are paid in advance.
What is prepaid insurance?
The cash amount is debit
when cash is received