Category 1
A government organization in the U.S. that helps small businesses. It gives out loans, guarantees them, and offers advice to help them grow and succeed.
What is a Small Business Administration?
A book or digital record where all the financial transactions of a business are organized. It's like a big notebook that tracks everything that happens with the company's money.
What is a Ledger?
A set of rules that businesses in the U.S. follow when keeping their financial records. It makes sure that everything is reported the same way so people can trust the information.
What are the GAAP?
The profit or loss after subtracting expenses from revenue.
What is Net Income?
The money a company earns from selling its products or services. It's the total amount of income a business makes before paying for expenses.
What is Revenue?
Amounts a business promises to pay back later, usually with interest. It’s a kind of IOU that the business has to pay in the future.
What is Notes Payable?
When an account usually increases with a debit (left side). For example, assets and expenses go up when you debit them.
What is a Normal Debit Balance?
Original records that show proof of a business transaction. Examples are receipts, invoices, and contracts. They help keep track of the details of each transaction.
What are Source Documents?
Money that customers owe a business for products or services they’ve already received but haven’t paid for yet. It's basically what the business is waiting to get paid.
What are Accounts Receivable?
The left side when making entries in accounting books. When you debit something, you're usually adding to assets or expenses, or reducing liabilities and income.
What is the Debit Side?
Things the business owns (like cash, buildings, or equipment).
What are Assets?
Net Income = Revenue - Expenses
What is the Basic Income Statement?
Money a business owes to other companies or vendors for things it bought on credit. It’s like the company’s bills that need to be paid.
What are Accounts Payable?
The debts or obligations a company owes. These are things like loans or bills the company has to pay back.
What are Liabilities?
What’s left for the owners after paying off debts.
What is Equity?
This is the foundation of accounting, showing that everything the business owns (assets) comes from what it owes (liabilities) or what the owners put in (equity).
What is the Accounting Equation?
When a company’s expenses are higher than its revenue. It means the business spent more than it earned, so it’s in the red.
What is Net Loss?
Where a business records all its transactions for the first time. It's like the starting point where everything gets written down before it goes into specific accounts.
What is the General Journal?
The costs of running the business.
Assets = Liabilities + Equity
What are the three parts of the Accounting Equation?