The Accounting Equation
Classification of Prepaid Insurance
What is an asset
What is the left side of the t-account called?
Source document used when business sells services on account
What is a sales invoice
Cash is listed on this financial statement
What is the balance sheet
Classification of Capital
What is equity
Normal balance of sales
What is a credit
What do you always credit when a check is used to pay for something?
What is cash
What is a debit to petty cash & credit to cash
Accounts Payable is listed on this financial statement
What is the balance sheet
Assets - Liabilities equals
What is Net Worth (Owner's Equity)
Normal Balance of Expenses
What is a debit
What do you debit and credit in the following transaction:
Paid cash for rent.
What is debit rent expense & credit cash
When performing a bank reconciliation, what should you do with outstanding deposits?
What is add the outstanding deposits to the ending bank balance from the bank statement.
The debit column on the income statement represents these accounts
What is Expenses
Which accounts are being affected in the following transaction and how (increase/decrease):
Sold services on account.
What is Accounts Receivable is increasing & Sales is increasing
Normal balance of Withdrawals/Drawings
What is a debit
What do you debit and credit in the following transaction:
Received cash from owner as an investment.
What is debit cash & credit capital
When performing a bank reconciliation, what should you do with a service charge listed on the bank statement but not the check register?
What is subtract the amount of service charge from ending balance of checkbook register.
The credit column of the income statement represents these accounts
What is revenue/sales
Which accounts are being affected in the following transaction and how (increase/decrease):
Paid cash on account.
What is Cash is decreasing & Accounts Payable is decreasing
Definition: is a system where every financial transaction is recorded in at least two accounts, with equal debits and credits, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced
What is double-entry accounting
What do you debit and credit in the following transaction:
Received cash on account.
These two amounts should be equal after you perform the bank reconciliation
What is Adjusted Bank Statement Balance & Adjusted Checkbook Register Balance (I will accept the answer without the word "adjusted")
On our trial balance, the balance of supplies is $500. Our client says the balance should be $400. What is the adjustment entry to be made?
What is a debit to supplies expense of $100 & and credit to supplies of $100