Accounting 1
Right side of a T-account.
What is a Credit?
Side of the T-account that is the increase side.
What is Normal balance?
A visual tool that is used by accountants to analyze business transactions to sort out debits and credits.
What are T-Accounts?
List of all accounts a business uses.
What is a Chart of Accounts?
Something accounts are grouped in. Used to be a big leather-bound book but is more likely, electronic now.
What is a Ledger?
Financial record keeping system in which each transaction affects at least 2 accounts.
What is Double-Entry Accounting?
Accounts Receivable: Explanation
What is a purchase on account by a customer?
Credit side of a T-account.
What is Right Side of the T-account?
Withdrawls account classification.
What is Owner's Equity?
The name of the document you fill out at the end of the fiscal period to check your work you did in the journal and ledgers
What is the work sheet?
Revenue: Explanation
What is money earned by a business?
By something but agree to pay later.
What is buy on account?
If you have a debit balance of $500 and credit $300, what is your new balance?
Writing a check takes money from this type of bank account.
What is a Savings Account?
The left side of a T-account.
What is a credit?
Office Equipment: Classification
What is an Asset?
Accounts Recievable: Classification
What is an Asset?
Debit side of the T-account.
What is Left side of a T-account?
Account Payable: Classification
What is a Liability?
Your business agrees to pay them later.
What is Accounts Payable (A/P)?
Owner's Equity increases.
What is a credit or Right side of a T-account?
An owner takes money from the business for personal use.
What is a Withdrawal?
The length of time for which a business summarizes its financial information and reports its financial performance
What is a fiscal period?
Assets=Liabilities+Owner's Equity
What is the accounting equation?
Cash In Bank: Classification.
What is Asset?