The financial document that includes Assets, Liabilities and Owner's Equity
What is the Balance Sheet
100
Recording and reporting a business's financial information separately from the owner's financial information is an application of this accounting concept
What is Business Entity
100
The journal entry when $500 cash is received on account
What is
Cash is increased/debited $500 and
A/R is decreased/credited $500
100
The journal entry to close sales
What is
Debit Sales
Credit Income Summary
200
All Liabilities have this normal balance
What is Credit
200
The financial document that includes only the sales and expense accounts
What is the income statement
200
Following the same accounting procedures in the same way in each accounting period is an application of this accounting concept
What is Consistent Reporting
200
When $200 worth of services are sold on account
What is
A/R is increased/debited $200
Sales is increased/credited $200
200
The journal entry to close the expense accounts
What is
Debit Income Summary
Credit each expense account
300
The Sales account has this normal balance
What is Credit
300
The formula to calculate new income
What is sales - expenses
300
Recording revenue from business activities and expenses associated with earning that revenue in the same accounting period is an application of this accounting concept
What is Matching Expenses with Revenue
300
The owner invests $10,000 to start the business
What is
Cash is increased/debited $10,000
Capital is increased/credited $10,000
300
Journal entry to close Income Summary when there is a net income
What is
Debit Income Summary
Credit Capital
400
The owner's Drawing account has this normal balance
What is Debit
400
the formula for Capital on the balance sheet
What is Beginning Capital + Net Income - Drawing
400
Reporting changes in financial information for a specific period of time in the form of financial statements is an application of this accounting concept
What is Accounting Period Cycle
400
If posting is interrupted, the accounting personnel know to resume posting....
What is by finding the line with a blank post. ref. column in the journal
400
The journal entry to close the drawing account
What is
Debit Income Summary
Credit Capital
500
Income Summary has this normal balance
What is Neither...it has no normal balance
500
Net Income / Sales (on the income statement)
/ = divided by
What is the % sales component
500
Assuring that financial statements contain all information necessary to understand a business's financial condition is an application of this accounting concept
What is Adequate Disclosure
500
The procedure for transferring information from a journal entry to a ledger account
What is Posting
500
The value of supplies used during the fiscal period