Account
Terminology
Terminology
For each transaction, the total value of debits equals the total value of credits.
What is double entry
An increase to an asset should always be a
What is Debit
An increase to an expense is always a
What is debit
An increase to a liability is
What is credit
Provided services for a customer and received $4,000 cash
What is Cash/Asset (Debit) and Service Revenue/Revenue (Credit)
Journal entries that affect more than two accounts and have multiple debits and credits are called
What is Compound Journal Entries
True or False? Depending on the type of transaction, you can have either only two debits or only two credits
What is false
In the debit and credit system, debits are always recorded on the
What is left
Paid cash for supplies. Explain how this affects the accounting equation.
What is Increases assets (supplies) and decreases assets (cash)
Received a notes payable of $6,000 cash
What is Cash/Asset (Debit) and Notes Payable/Liability (Credit)
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is owner's equity?
Main purpose of the trial balance
What is ensuring that total debits equals total credits
What is a business with only one owner called?
What is Sole Proprietorship
Paid cash for insurance. Explain how this affects the accounting equation.
What is cash decreases (asset) and insurance increases (asset)
Received a $400 bill for utilities which will be paid later
What is Utilities Expense /Expense (Debit) and Accounts Payable/Liability (Credit)
The loss in value of an asset over a period of time
What is depreciation
Once an asset is no longer usable it will be sold at a value called this
What is Salvage Value
What does FDIC stand for?
What is Federal Deposit Insurance Corporation
Bought supplies on account. Explain how this affects the accounting equation.
What is Supplies increases (asset) and money owned on account (liability) increases
Provided services to a customer who will pay $2,000 next month
What is Accounts Receivable/ Asset and Service Revenue/Revenue
The entry to record the payment of bank loan principal requires
What is Debit notes payable, credit cash
The salary earned by an employee after all payroll deductions have been made
What is net pay
Hamilton Lawn Service earned $1,000 for services rendered. The customer promised to pay at a later time. What is the effect on accounts?
What is Accounts receivable increases; Owner's capital increases
Paid cash on account.
What is Cash (asset) decreases and amount owed on account (liability) decreases
Paid the utilities bill recorded earlier with $400 cash
What is Accounts Payable/Liability and Cash/Asset