Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/25

Click to flip

25 Cards in this Set

  • Front
  • Back
What basic accounting device is used to analyze transactions?
T-Account
What determines which side of a T-Account will be the normal balance side
The location of the account in the accounting equation.The normal balance is the same side of the equation that the account appears on.
What are the 2 basic rules that determine increases and decreases in accounts
1. Accounts increase on the normal balance side
2. Accounts decrease on the side opposite the normal balance side
Assets increase on what side?
Debit side
Liabilities increase on what side?
Credit side
Owner's Equity increases on what side?
Credit side
Revenue or sales increase on what side?
Credit side
Expenses increase on what side?
Debit side
Withdrawals increase on what side?
Debit side
How do we define debit?
An amount recorded on the left side of the T-Account
How do we define Credit?
An amount recorded on the right side of a T-Account
What is a "Chart of Accounts"?
A list of accounts used by a business
What is a Contra-Account?
An account that reduces a related account on a financial statement
What is a journal?
A form for recording transactions in chronilogical order.
What is a "Special Amount Column"?
A journal amount column headed with an account title
What is a "General Amount Column"?
A journal amount column that is not headed with an account title
What do we mean by "Double-Entry" accounting?
The recording of both the debit and credit parts of a transaction.
What is a source document?
A business paper from which information is obtained for a journal entry
What are the 4 types of source documents?
Check, Calculator Tape, Receipt, Memorandum
What is "Proving Cash"?
Making sure that the amount of cash agrees with the accounting records
What is the source document for a cash payment?
A check
What is the source document for cash received from transactions other than sales
Receipt
What is the procedure for "proving a journal page"?
1. Add each of the amount columns
2. Add the debit column totals and then the credit column totals
3. Verify that total debits equal total credits
Define "Check"
A business form ordering a bank to pay cash from a bank account.
What is a memorandum?
A form on which a brief message is written describing a transaction