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21 Cards in this Set
- Front
- Back
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Assets= |
Liabilities+Equity |
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Equity= |
Common Stock-Dividends+Revenue-Expenses |
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In Common Stock, what do you do with Debits and Credits? |
Debits down, Credits up *Think Common Stock/Credit |
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In Dividends, what do you do with Debits and Credits? |
Debits up, Credits down *Think Dividends/Debit |
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In Revenue, what do you do with Debits and Credits? |
Debits down, Credits Up |
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In Expenses, what do you do with Debits and Credits? |
Debits up, Credits down |
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What is the most popular account? |
Cash |
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What are the 4 steps of Journalizing and Posting Transactions? |
1: Analyze transactions and source documents 2: Apply double-entry accounting 3: Record journal entry 4: Post entry to ledger Note-normally you put the debits first *Think: A.A.R.P |
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In Assets, what do you do with Debits and Credits? |
Debits up, Credits down |
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In Liabilities, what do you do with Debits and Credits? |
Debits down, Credits up |
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In the T-Account chart, what side do the debits go on? Credits? |
Debits-Left Credits-Right |
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What is the ledger? |
A collection of accounts |
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What are equity accounts? |
(The Owner's Stuff) ex: retained earnings, revenues, common stock, dividends, expenses |
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What are external transactions? |
Occur between the organization and an outside party |
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What are internal transactions? |
Occur within the organization |
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What is an account? |
A record of increases and decreases |
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What is the General Ledger? |
A record containing all accounts used by the company |
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What are ethics? |
Beliefs that distinguish right from wrong, accepting standards of good and bad behavior |
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What are the three business entity forms? |
Sole proprietorship (one person), partnership (two people), corporation (separate entity/artificial person) |
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What concepts and rules are the Generally Accepted Accounting Principals? |
1: Relevant Info-affects decisions of its users 2: Reliable Info-is trusted by users 3: Comparable-used in comparison across years and companies |
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What are the Guidelines for making Ethical Decisions? |
1: Identify concerns (use personal ethics to recognize concern) 2: Analyze options (consider all good/bad consequences) 3: Make ethical decisions (choose best option) *Some things are black&white, others are gray and fuzzy |
