This term is used to describe a financial event that causes a change in financial position.
What is a Business Transaction?
100
This sheet is ideal for studying and recording changes in financial position.
What is the equation analysis sheet?
100
Once all of the transactions are recorded. This formal financial statement must be updated.
What is the balance sheet?
100
This item is brown and sticky.
What is a stick?
100
When one transaction has two asset items being affected, what happens? Do they both go up? Down? One up, One down? Etc..
One goes up, one goes down.
200
If an owner were to buy a truck for $20,000 with cash, his trucks account would increase and his cash account would do this.
What is decrease?
200
All of the accounts and beginning balances put into this sheet are taken from this.
What is the balance sheet?
200
There must be a minimum of this many item changes in a transaction.
What is 2!!
200
These papers show proof of a transaction!
What are source documents?
200
If a customer pays for a service on account, the accounts receivable account will increase, and so will this one.
What is the equity account?
300
When a business owner found out her new computer was broken, the apple store exchanged the computer free of charge. This is NOT an example of one of these.
What is a business transaction?
300
The accounts in this new sheet are organized into these three categories.
What are assets, liabilities and equity?
300
If a owner wanted to pay for a truck with both cash and on account, this many account changes will occur.
What is 3?
300
Name three examples of a source document.
Invoice, hydro bill, receipts, cheque copies, credit card statements etc.
300
If an owner pays off one month of their mortgage with bank load money, then both of the liability accounts will do this.
What is decrease.
400
When an owner decides to buy a product with a promise to pay it back later, the money owed is recorded in this account.
What is the accounts payable.
400
In this new sheet, the beginning balances are listed on the first line, then a transaction is recorded on the second, then this is listed on the third line before the next transaction is recorded.
What is new balance?
400
To make sure the transaction recording process is correct, the accounting equation must do this.
What is balance!
400
This is what happens to these receipts/bills etc. after the accounting entries have been completed.
What is kept of file for future reference?
400
If an asset increases and a liability increases, the equity will do this.
What is stay the same.
500
When a customer decides to pay with an IOU- or a promise to pay later, the owner gains money in this account.
What is the accounts receivable?
500
Once all of the transactions are recorded, this must be the last step to make sure everything is in check!
What is using the Accounting Equation?
500
Good accountants use their memory, clear thinking, a thorough understanding of accounting theory and this, to perform their accounting duties correctly.
What is Common Sense!
500
This GAAP states that accounting will be recorded on the basis of objective evidence.
What is the Objectivity Principle?
500
If the owner takes out money to pay himself, which account(s) will be affected?