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Accounting Equation
Rules of credit an debit
Journalizing Transactions
Financial Statement
Vocabulary
100

What is the accounting equation?

Assets= liability+ owners equity(capital)

100

Why is the rule of debit and credit important in ones business?

Keeps accounting equation balanced

100

Information needed to record entries in the journal is obtain from _______?

Source documents

100

Does the heading of a balance sheet indicate a period of time or a point in time?

point in time 

100
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.


Balance sheet. 

200

If the owner of a business puts money into the business, what account does it affect?

Owners Equity 

200

What is the balance of a cash in bank account?

Debit 

200

What are three part of a journal entry?

Date, credit, and debit 

200

What is the main purpose of financial accounting? 

Provide useful, financial information to outsiders. 

200

typically cash or liquid assets being held or obtained for expenditures.

Capital

300

How do you find Net income?

Total revenues- Total Expense= Net Income 

300

When a company receives payment what accounts should the company debit and credit?

Cash in bank and Accounts receivables 

300

A _________ is the source document for cash received from transactions other than sales?

Receipt

300

What financial statement uses the expanded accounting equation?

Balance sheet

300

Recording transaction in a journal is known as 

Journalizing 

400

What is something that will decrease Owners Equity?

Net loss

400

What is the normal balance of expenses?

Debit 

400

The source document for all cash payment is a _____?

Check

400

What financial statement displays the revenue and expenses of company for a period of time?

Income statement 

400

the state of being responsible for something, especially by law.

liabilities

500

If total liabilities are $40,000 and owners equity is $60,000.What is the total amount of total assets?

Assets=$100,000

500

What transactions cause the Accounts payable accounts to Debit?

When account is gaining money.


500

What is a form describing the good or services sold, the quality, the price, and the terms of sale?

Invoice

500

What are the four main financial statements?

Balance sheets, Income statements, cash flow statements, statements of share holders equity

500

The main accounting record for a company or organization.

General ledger