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accounting equation
vocabulary
vocabulary
Vocabulary
Vocabulary
100
Assets= Liabilities+ Owners Equity
What is the basic accounting equation?
100
an accounting form that is used to record the increases and decreases in each financial statement item.
What is an account.
100
the process of transferring the cost of natural resources to an expense account.
What is depletion.
100
the winding up process when a partnership goes out of business.
What is liquidation.
200
amounts entered on the left side of an account.
what is the debits.
200
The liability created by a purchase on account.
What is accounts payable.
200
a method of reporting the cash flows form operation activities as the difference between the operation cash receipts and the operation cash payments.
What is direct method
200
the amount by which revenues exceed expenses.
What is net income.
200
one of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price
What is sales budget.
300
The rights of creditors that represent debits of the business.
What is a liability.
300
a claim against the customer created by selling merchandise or services on credit.
What is accounts receivable.
300
the account used to record amounts withdrawn by an owner of a proprietorship.
What is drawing.
300
a unincorporated business form consisting of two or more persons conduction business as co owners for profit.
What is a partnership.
300
journals designed to be used for recording a single type of transaction.
What is special journals.
400
The resources owned by a business.
What is an asset
400
a list of the assets, liabilities, and owner's equity as of a specific date, usually at the close of the last day of a month or a year.
What is a balance sheet.
400
a summary of the revenue and expenses for a specific period of time, such as a month or a year.
What is income statement.
400
the total amount paid to employees for a certain period.
What is payroll.
400
shares of ownership of a corporation.
What is stock.
500
The owners right to the assets of the business.
What is owners equity.
500
a list of the accounts in the ledger.
What is a ledger.
500
the initial record in which the effects of a transaction are recorded.
What is a journal.
500
term for balance sheet account because they are relatively permanent and carried forward from year to year.
What is real accounts
500
a special form for recording relevant data about a liability and the details of its payment.
What is a voucher.