The property or any items of value owned by business
What is assets?
100
The business will run indefinitely.
What is Going Concern?
100
Assets = Liabilities + Owner's Equity
What is the Accounting Equation
100
Cash in Bank increased by $30,000
Crista, Capital increased by $30,000
Transaction 1. Crista invested $30,000 cash in the business
200
General Accounting Principles
What is GAAP
200
The life of business can be divided into equal time periods
What is Accounting Period Assumption?
200
Identify the account affected, classify the account affected, determine the increase or decrease of each account affected, make sur3e that the accounting equation remain balance.
What are the steps used to analyse business transaction?
200
Bike repair Equipment will increase +$2,500
Accounts Payable will increase +$2,500
Transaction 2. Purchased $2,500 in bike repair equipment on account, payable in 30 days.
300
A person or a business that has a claim to the assets of a business, a person or a business to which money is owed.
What is creditor?
300
The business has its own financial status, and its position is separate from the finances of its owners.
What is Business Entity Assumption
300
Business transaction affect at least two accounts
How many accounts will be affected by business transaction?
300
Owner's equity will decrease -$10,000
Cash in bank will decrease -$10,000
Transaction 3. wrote a check for the first rent instalment $10,000