Documents & Losses
What are source documents?
Business papers that prove a transaction happened.
What are assets, liabilities, and owner's equity?
The 3 main parts of a balance sheet.
What is the debit side?
The left side of a T-account.
What is accounts receivable?
Money owed to a business by customers.
What is the Small Business Administration?
A U.S. government agency that helps small businesses with loans and other support.
What are receipts, invoices, checks, bank statements, and sales slips?
Examples of source documents.
What are revenue, expenses, and net income/net loss?
The 3 main parts of an income statement.
What is Assets = Liabilities + Owner’s Equity?
The basic accounting equation.
What is accounts payable or liability?
Money a business owes to suppliers or creditors.
What is revenue?
Money a company earns before subtracting expenses.
What is a net income?
is the amount of money a business has left over after subtracting all its expenses from its total revenue.
What is the income statement?
This report shows a company’s financial performance over a specific time.
What is Generally Accepted Accounting Principles?
GAAP stands for this.
What is notes payable?
A written promise to pay money at a future date, usually with interest.
What is a ledger?
A record of all financial transactions organized by account.
What is double-entry accounting?
This system ensures every transaction affects at least two accounts.
What is the balance sheet?
This report shows what a business owns, owes, and the owner’s share.
What are assets and expenses?
Accounts that typically have a debit balance.
What is a net loss?
When a company’s expenses are greater than its revenue.
What are liabilities?
Obligations a business owes to outsiders, such as loans or accounts payable.
What is a receipt?
This document is often given to a customer as proof of payment.
What is a break-even or zero net income?
When revenue equals expenses, a business has this result.
What is Revenue – Expenses = Net Income or Net Loss?
The income statement is based on this formula.
What is an asset?
Anything of value that a business owns or controls and can use to make money.
What is the general journal?
A document that shows all initial business transactions in chronological order.