Accounting

The Accounting Cycle

100

What is the 1st step in The Accounting Cycle?

Collect and verify source documents.

200

How many steps are there in the Accounting Cycle?

9

Rules For Asset Accounts

100

True or False. An asset account is decreased on the debit side?

False

200

The normal balance for an asset account is the _______

Increase or the debit side

Chart of Accounts

100

Cash in Bank, Computer Equipment, Office Equipment, Accounts Receivable, These accounts are classified as...

Assets

200

Carlos Jones took $25,00 from personal savings and deposited that amount to open a business checking account. What 2 accounts are effected in the transaction?

Cash in Bank and Carlos Jones, Capital

Accounting Terms

100

___________ is the creditor's claims to the assets of the business

Liabilities

200

__________ __________ is a legal right to an item

Financial Claim

Accounting Equation

100

Owner's Equity=300 Liabilities=2000 Assets=?

500

200

Owner's Equity= 4,000 Liabilities=? Assets= 17,000

13,000