Accounting Basics
The Accounting Equation
What is Assets=Liabilities + Owner's Equity
This statement shows revenues and expenses
What is an Income statement?
Increases to assets are recorded as _____.
What are debits?
Paid cash for supplies affects which two accounts?
What is supplies and cash?
A list of accounts used by a business
What is a Chart of Accounts?
The language of Business
What is Accounting?
This shows assets, liabilities, and equity at a point in time
What is a balance sheet?
Increases to liabilities are recorded as ______/
What are Credits?
Provided services for cash affects which accounts
What is Cash and Revenue?
Money owed by customers.
What is Accounts Receivable
Money or property invested by the owner.
What is Capital?
Net income increases this section of owner's equity
What is Capital?
Increases to expenses are recorded as _______?
What are debits?
Owner withdrew cash for personal use.
What is cash and Owner's Drawing?
Money owed to suppliers
What is Accounts Payable?
Debits are always on which side of a T-Account
What is the left side?
The report shows changes in owner's equity
What is Statement of Owner's Equity?
Increases to owner's equity are recorded as __________.
What are credits?
Purchased equipment on account.
What is Equipment and Accounts Payable?
A written record of a business transaction
What is a source document?
The process of recording transactions
What is journaling?
The financial statement that reports cash inflows and outflows
What is the statement of Cash Flows?
The normal balance of an asset account
What is debit?
Paid off a debt in cash
What is Cash and Accounts Payable
The record that summarizes all transactions for an account.
What is a Ledger?