Accounting Equation
Assets= Liabilities + Owner's Equity
What is the accounting equation?
A business activity that changes asset, liabilities, and owner's Equity
What is a transaction
The side of the accounts that would be increased
What is normal balance
Record summarizing all the information pertaining to a single item in the accounting equation
What is an account?
Amount owed by a business
What is a liability
The amount in an account
What is the account balance?
An amount recorded on the left side
what is debit?
The account on the left side with a normal balance of debit
What is Assets?
Anything of value owned
What is an Asset?
The amount used to summarize the owner's equity
What is Capital
An amount recorded on the right side
What is credit?
The accounts on the right side of the equation with a normal balance of credit
What is liabilities and owner's equity?
The amount remaining after liabilities is subtracted from assets
What is Owner's Equity
The name given to an account
What is Account Title?
A list of accounts used by business
What is the charts of accounts?
The accounts affected when services are sold on account
What is owner's equity and accounts receivable?
Assets = Liabilities + Owner's Equity
10,000 = ? + 6,000
What is 4,000?
Accounts affected when cash is paid on account
What is cash and accounts payable
Accounts affected when you receive cash from the owner as an investment
what is cash and capital
Accounts affected when cash is received from sales
What is cash and owner's equity?