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Accounting 101
A, L & OE
Accounting Cycle
Vocabulary
Miscellaneous
100
What is the accounting equation? 

Assets = Liabilities + Owner's Equity

100
These are items owned that have monetary value
What are assets?
100

It is anything of value that a person or business owes money on

What is Liability?

100

What is Asset, Liability, Owners Capital

What is a type of account?

100
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
200

This is the purpose of accounting

Identify and record financial transactions to make business decisions 

200

These are the 2 ways the fundamental accounting equation is stated.

What are 1) Assets-Liabilities=Owner's Equity and 2) Assets=Owner's Equity+Liabilities?

200
The business or person selling the item on credit, can be any person/business you owe money to
Who is a creditor?
200

What is revenue, expenses, owner's withdrawals

What are accounts that affect owner's equity

200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300

These represent the types of business organizations that use accounting.

What are 1)sole proprietorships, 2)partnerships and 3)corporations?

300
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
300
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is analyze a business transaction?
300
When you buy something and agree to pay for it later
What is Credit?
300
If a business closes, the claims of these individuals are settled first.
Who are creditors?
400

When can a transaction only affect one side of the equation? 

When the transaction is a transfer of one asset for another or there is an equal increase and decrease to one type of account. 

400

This is the difference between total assets and total liabilities.

What is Owner's Equity?

400
Decreases both assets and owner’s equity
What is a withdrawal?
400
Property or items of value owned by a business
What is assets?
400
This system is used to analyze and record a transaction
What is a double-entry accounting?
500

This involves testing business records and procedures for accuracy.

What is auditing?

500
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
500
It is a legal right to property
What is a financial claim?
500
Is a list of all accounts used by a business.
What is chart of accounts?
500
Income earned from the sale of goods or services is called?
What is revenue?