A planned process designed to compile financial data and summarize the results in accounting records and reports.
What is an Accounting system?
100
The accounting equation.
What is Assets = Liabilities + Owner's Equity?
100
An increase in equity resulting from the sale of goods or services
What is revenue?
100
Paid cash for insurance. (Accounts increased/decreased)
What is increase PPI, decrease Cash?
100
The standards and rules that the accountants follow while recording and reporting financial activities.
What is GAAP (generally accepted accounting principles)?
200
Reports that summarize the financial condition and operations of a business.
What are financial statements?
200
Financial rights to the assets of a business
What is equities?
200
A sale for which payment will be received at a later date.
What is sale on account?
200
Bought supplies on account
What is increase supplies, increase accounts payable?
200
This is applied when a business's financial information in recorded and reported separately from the owner's personal financial information.
What is Business Entity?
300
Anything of value that is owned.
What are assets?
300
Business activity that changes assets, liabilities or owner's equity.
What is a transaction?
300
The cost of goods or services used to operate a business.
What is an expense?
300
Paid cash on account
What is cash decrease, accounts payable decrease?
300
Business activities are stated in numbers that have common values.
What is Unit of Measurement?
400
Amount that is owed.
What is a liability?
400
An account used to summarize the owner's equity in a business is called
What is a capital account?
400
Assets taken from the business for the owner's personal use.
What are withdrawals?
400
Received Cash from Sales
What is cash increase, Capital increase?
400
Delgado Web services owner Michael Delgado must be careful to keep the business accounting records separate from his own personal financial records. The accounting concept being applied is
What is Business Entity?
500
The principles of right and wrong that guide an individual in making decisions.
What is ethics?
500
A person or business to whom a liability is owed.
What is a creditor?
500
A debt owed by the business.
What is a liability?
500
Sold services on account
What is accounts receivable increase, capital increase?
500
This is applied when revenue is recorded at the time goods or services are sold.
What is Realization of Revenue (sometimes called Revenue Recognition)?