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Affect on OE
Accounting equation
T-accounts
Terms
JOURNALS
100
Payment of cash for rent
What is a decrease?
100
anything of value that is owned
What is an asset?
100
This is the normal balance for a revenue account
What is a credit?
100
A record summarizing all the information pertaining to a single item in the accounting equation
What is an account?
100
Transactions are recorded in a journal in this order
What is chronological?
200
Sold services on account
What is an increase?
200
financial rights to the assets of the business
What is a liability
200
Amounts recorded on the left side of a t-account
What is a debit?
200
A business activity that changes assets, liabilities or owner's equity
What is a transaction?
200
A business paper from which information is obtained for a journal entry
What is a source document
300
Sold services for cash
What is an increase?
300
the amount remaining after the value of all liabilities is subtracted from the value of all assets
What is owner's equity
300
The side of the account that increases
What is a normal balance?
300
A decrease in owner's equity resulting from the operation of the business
What is an expense?
300
Verification that total debits = total credits on the journal page
What is a proof?
400
Bought supplies on account
What is no effect?
400
The account used to summarize owner's equity in a business
What is capital?
400
These two account classifications have a normal debit balance
What are assets and expenses?
400
Form for recording transactions in chronological order
What is a journal?
400
Date, debit, credit, source document
What are the four parts of a journal entry?
500
Received cash from a sale on account
What is no effect?
500
These account classifications are on the right side of the accounting equation
What are liabilities and owner's equity
500
Each transaction recorded in a journal
What is an entry?
500
Written in the account title space of a new journal page with a balance from a previous page
What is brought forward?