Chapter 1
Asset
Anything of value that is owned
Transaction
any business activity that changes assets, liabilities, or owner’s equity.
Debit
An amount recorded on the left side of an account
Journal
A form for recording transactions in a chronological order
Is cash always cash?
NO
Personal Net Worth
The difference between personal assets and personal liabilities
Creditor
A person or business to whom a liability is owed to.
Credit
An amount recorded on the right side of an account.
Source Document
A business paper from which info is obtained for a journal entry
Name a type of expense
literally any expense
Proprietorship
A business owned by one person.
Sale on account
A sale for which payment will be received at a later date
Chart of Accounts
A list of accounts used by a business
Check
A business form ordering a bank to pay cash from a bank account.
What is a plant asset?
anything permanent
GAAP
Generally Accepted Accounting Principals
Expense
The cost of goods or services used to operate a business.
Accounts Receivable
Amounts to be received in the future due to the sale of goods or services.
Sales Invoice
An invoice used as a source document for recording a sale on account
If both accounts affected are going down, what do debit and credit do?
switch
Accounting Equation
assets= liabilities + owner's equity
Withdrawals
Assets taken from the business for the owner’s personal use.
Accounts Payable
Amounts to be paid in the future for goods or services already acquired.
Journalizing
Recording transactions in a journal
Where is Ms. Strebigs favorite place to vacation?
Walt Disney World