Accounting Categories
the category in the formula that contains items/accounts that ADDS value to a business
Assets
Gained $10,000 cash from the bank to invest in your business
debit cash
credit capital
there are 5 boxes in the # spots for the ledger. Which numers go where?
1st box - thousands
2nd box - hundreds
3rd box - tens
4th box - ones
5th box - cents
which closing sheet in the work sheet highlights all final totals of all the company's accounts in a snipit of time?
trial balance
the category in the formula that calculates profit or loss by how much the company made selling their product/service
REVENUE
Mostco's buys $250 worth of supplies on account from our business.
debit a/r mostco's
credit supplies
how to you determine customer number
by whatever the company determines numbers but generally :
1st number 0, 2nd category, 3rd account
which closing sheet in the work sheet highlights only the assets, liabilities, and OE?
Balance Sheet?
the category in the formula that calculates profit or loss by how much the company spent
Expenses
bought $600 worth of insurance
debit prepaid insurance
credit cash
how do you determine if the BALANCE column is debit or credit?
by seeing what account is affected and its category int he formula
which closing sheet in the work sheet highlights only the profit or loss?
income statement?
the category in the formula that shows investments from the founder or other shareholders and how much the company is worth
Owner's Equity
paid back the JJ CC company $500 on our debt.
debit a/p jj cc
credit cash
which accounts are debits and which are credits?
assets and expenses - debit
revenue, liabilities, OE - credit
which closing sheet is over a range of time instead of a snipit of time?
income statement
the cateogry in the formula that highlights all accounts that would hurt the business due to debt or other losses
Liabilities
david co sold us $50000 equipment on account
credit a/p david co
how many ledgers should you have?
as many accounts as you have used in the journal
which closing sheet has two different names? and what are they?
profit and loss statement and the income statement