Accounting 1
Walmart would be an example of what type of business
What is Merchandising Business?
It is anything of value that a person or business owns and therefore controls
What is property?
Bookkeeping is accounting data that is posted from journals and aggregated from subledgers, such as accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects. The data posted is recorded on this document, which may be maintained on paper, on a computer, or in the cloud.
What is General Ledger?
When a business buys a computer with cash, its cash ______, but its computer equipment ________
What decreases and increases?
This is the purpose of accounting
What is to 1)identify, 2)record and 3)communicate financial information?
John's Pest Control would be an example of
What is Service Business
A branch of accounting concerned with the summary, analysis and reporting of financial transactions related to a business.
What is financial accounting?
A business that buys raw materials, uses labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses.
What is a Manufacturing Business?
Real or virtual movement of money
What is Cash Flow
The actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year.
What is Deprecation?
This provides a summary of the financial balances of an individual, organization, or a business entity, whether it is for profit or not-for-profit.
What is a Balance Sheet
When you buy something and agree to pay for it later, the debt owed is recorded on this type of subsidiary account or T-Chart.
What is Accounts Payable or A/P?
A type of accounting system in which information is processed largely by hand recording of transactions.
What is Manual Accounting System?
A commitment of resources to achieve later benefits". It may also be defined as a "commitment of money to receive more money later"
What is Investment
The legal permission, granted by a state, that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.
What is a Charter
An ownership interest in property that may be offset by debts or other liabilities.
What is equity?
A business structure designed to combine the tax advantages of a partnership with the operating advantages of a corporation, and limit the liability of the business owner.
What is a LLC?
The total amount of income generated by the sale of goods and services related to the primary operations of the business.
What is Revenue?
Recording of financial transactions, and is part of the process of accounting in business and other organizations.
What is bookkeeping?
This is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.
Net Income