Something of significant value that the company owns.
What is an asset?
100
Double entry bookkeeping.
For every debit there is a credit
100
Revenues minus expenses.
What is net income/loss?
100
Journals used to record purchases.
What is a purchase journal?
100
The formula for calculating net income.
What is revenue minus expenses
200
Something that you owe
What is a liability?
200
The documents required to fulfill the Objective Evidence principal. This principal states that every journal entry must backed up by an invoice, check, receipt..etc.
What are source documents?
200
Statement that records changes to owners equity.
What is the Income Statement?
200
Ledger used to track vendor account balances.
What is the A/P ledger?
200
The normal balance of an accounts payable account.
What is a credit?
300
An account used to summarize the owners equity in a business
What is the capital account?
300
The chronological order in which journal entries are by.
What is the date?
300
Statement that reports information about the elements of the accounting equation: Assets = Liabilities + Owners Equity
What is the Balance Sheet?
300
A purchase on account increases the balance in these two accounts.
What are the Purchases and Accounts Payable accounts?
300
Normal balance of a revenue account.
What is a credit?
400
Goods that a company purchases to sell.
What is merchandise?
400
A list of all accounts and their balances as of the end of that fiscal period.
What is the trial balance?
400
The two ratios calculated from the Income Statement?
What is the Total Expenses Ratio and Net Income Ratio?
400
The subsidiary ledger that contains vendor accounts.
What is the accounts payable ledger?
400
The only balance column in the accounts payable ledger.
What is the credit balance column?
500
Assets that will not be used within one year.
What are capital assets?
500
The eight steps in the accounting cycle.
What is analyzing transactions, journalizing, posting, preparing worksheets, adjusting entries, financial statements, journalize and post closing entries, and the post closing trial balance
500
In the balance sheet, changes to the owners equity account are calculated this way.
What is Beginning capital+Net Income- Drawings
500
The five journals a merchandising business uses.
What is the Purchases journal, Cash payments, Sales journal, Cash receipts, and General journal.
500
The five steps to post.
What is the date, page number, amount, balance, and transferring the account number to the journal page?