What is a financial statement that reports assets, liabilities, and owner's equity?
100
GAPP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES)
What are the standards and rules that accountants follow?
100
Assets are increased
Owner's Equity is increased
What happens when the business receives cash from sales
200
An amount owed by a business
What is liability
200
Assets
What are Cash, Supplies and prepaid Insurance
200
Assets, Liabilities and Owner's Equity
Name the three main sections on the balance sheet
200
Owner's equity increases
How is owner's equity affected when cash is received from sales?
200
The asset cash is increased and the asset accounts receivable is decreased.
What happens when a company receives cash from a customer from a prior sale?
300
A business owned by one person
What is sole proprietorship
300
It a Liability
How is Accounts payable shown on the Accounting Equation?
300
Going Concern
What is the Accounting Concept applied when financial statements are prepared with the expectations that a business will remain in operation indefinitely?
300
drawings
What is the name given when the the owner takes money from the business for personal use?
300
These are called withdrawals. A withdrawal decreases owner's equity.
What happens when assets are taken out of the business for the owner's personal use
400
Accounting records
What are organized summaries of a business's financial activities
400
A transaction
What is a business activity that changes assets, liability and owner's equity?
400
Accounts payable and Capital
Name two transactions are listed on the right side of a balance sheet?
400
Assets cash increase
Owner's equity increase
What happens when the business receives cash from the owner as in investment
400
An adjustment must be made in order to have the totals of the two sides on the same line
What happens when one side of the balance is longer than the other side?
500
revenue
What is an increase in owner's equity resulting from the operation of a business
500
capital
What is the account used to summarize the owner's equity in a business?
500
Find the errors before completing any more work
What should be done if a balance sheet is not in balance?
500
A chart of Accounts
What is a list of accounts used by a business
500
The asset cash is decreased and the liability account Accounts payable is decreased on the right hand side of the accounting equation
What happens when the business pays cash on account to another company