Accounting Cycle
What is the first of the accounting cycle?
Collect Source Documents
What account do you use when closing the accounts?
Income summary
What is one basic type of taxes:
Purchase, Property, Wealth, or Income
Does Debit usually go on the right or left side?
Left
Name one account that has a normal balance of credit.
Capital or Revenue
What is step three of the accounting cycle?
Journal(General Journal)
How do you know whether the business has a net income or net loss?
When there is more revenue than expenses
What form summarizes how much you made and how much you pay in taxes?
W2
What do you need to find the income statement?
Revenue and Expenses
What's the account that goes under Liabilities?
What is step 4 on the accounting cycle?
Posting
Where do you put your closing transactions?
Under the General Journal
Name 3 ways to reduce amount of taxes owed.
Kids, Own property, Retirement Plans, Investments, Donate to Charities
Name the 2 accounts under Owner's Equity that are Debited.
Withdrawal and Expense
Does Capital go UP or DOWN in CREDIT?
It goes UP in CREDIT
All inflows of money into a business/when the business does its job
Paid rent worth $2,000, what account is being debited?
Expenses
How does the government determine how much taxes you owe?
W4, W2, 1040, K40 forms
Owner deposits 50,000 into the business, which accounts would be effected and how?
Cash/Debit Owner's Equity/Credit
A business paid off their debt, what would be the credit?
CASH
What is the accounting equation?
Liabilities + Owner's Equity
The account for income summary empties into what other account during the closing cycle?
Capital
What are the 2 types of Income Taxes?
Earned Income and Unearned Income
A customer had us perform work for them and paid us immediately, what would be the top part of the transaction?
CASH DEBIT
Our business had maintenance performed on account, what would be the credit?
ACCOUNT PAY