Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
|
Accounting equation |
Assets = liabilities + owner's equity |
|
|
Asset and examples |
Something of value to the business ; cash, supplies, prepaid insurance, etc.. |
|
|
Liabilities and examples |
Something that the business owes ;Accounts payable |
|
|
Owner's Equity and example |
Owner's "STAKE" in the business ; Capital account |
|
|
Service business |
Earn money by performing activities ;mechanic |
|
|
Proprietorship |
A business owned by one person |
|
|
Transanction |
business activity that changes the accounting equation |
|
|
Balance sheet |
A financial statement; shows that the accounting equation is balanced |
|
|
Revenue |
Increase in Owner's equity resulting from operation of business |
|
|
expenses |
Decrease in Owner's equity from operation of business |
|
|
Withdrawals |
Owner removes assets for personal use; Initially effects the drawing account; Effects The capital account in the long run. |
|
|
Net income equation |
Revenue - expenses = net income |
|
|
Debit and Credits |
Debit is on the left and credit is on the right |
|
|
Normal balance |
debits = credits ; each type of t- account has side either DR or CR that is increased |
|
|
DEAD CLOR |
D-debits E-expenses A-assets D-dividends C-credit L-liabilities O-owner's equity R-revenue |
|
|
Accounts receivable |
a business owes you money |
|
|
Accounts Payable |
Your business owes another business money |
|
|
End Capital Account Equation |
Beginning Capital =$ + Investments =$ +net income =$ -drawing =$ Equals end capital account amount. |
