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35 Cards in this Set
- Front
- Back
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Assets
Debit = Credit = |
Increase
Decrease |
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Liability
Debit = Credit = |
Decrease
Increase |
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Equity
Debit = Credit = |
Decrease
Increase |
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Collection of accounts for an information system
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Ledger
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Chart of Accounts
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List of all accounts a company uses and includes an identification number for each account
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Source documents
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identify and describe transactions
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Accounting Process
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Identifies business transactions and events,
Analyzes and records their effects Summarizes and presents information in reports and financial statements |
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Account
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Record of increases and decreases in a specfic asses, liability, equity, revenue, or expense
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General Ledger
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record containing all accounts used by a company
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Asset Accounts
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Resources owned or controlled by a company and that have expected future benefits
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Cash Account
Asset |
Reflects a company's cash balance
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Accounts Receivable
Asset |
held by a seller and refer to promises of payment from customers
Credit sales or sales on account |
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Accounts Receivable
Increase/Decrease |
increased by credit sales
decreased by customer payments |
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Account
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Record of increases and decreases in a specific asset, liability, equity, revenue or expense
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General Ledger
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Record containing all accounts used by the company
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Asset Accounts
types |
Cash, Accounts Receivable, Notes Receivable, Prepaid Accounts, Supplies, Equip, Buildings, Land
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Libility Accounts
types |
Accounts Payable, Notes Payable, Unearned Revenue, Accrued Liabilities
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Equity Accounts
types |
Owner's Capitol, Owner's Withdrawls, Owner's Equity, Revenue, Expenses
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Chart of Accounts
def |
List of all accounts & includes an identifying number
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T Account
def |
Ledger account and is a tool used to understand the effects of 1 or more transaction
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Double Entry Accounting
Assets Debit Credit |
Debit Credit
+ - |
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Double Entry Accounting
Libility Debit Credit |
Debit Credit
- + |
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Double Entry Accounting
Equity Debit Credit |
Debit Credit
- + |
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Double Entry Accounting
Equity Owner's Captiol Debit Credit |
Debit Credit
- + |
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Double Entry Accounting
Equity Owner's Withdrawl's Debit Credit |
Debit Credit
+ - |
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Double Entry Accounting
Equity Revenue Debit Credit |
Debit Credit
- + |
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Double Entry Accounting
Equity Expenses Debit Credit |
Debit Credit
+ - |
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4 Steps
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1 Analyze Transactions
2 Double Entry Acct - T accts 3 Record General Journal 4 Post to Ledger |
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Trial Balance
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List of all account balances in General Ledger
Debits = Credits |
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Income Statement
3 items on it |
Revenues - Expenses =
Net Income/Net Loss |
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Net Income is transferred to next Statement ....
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Statement of Owner Equity
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Statement of Owner Equity
3 items on it |
Owner Captiol + Net Income + Owner Investments
- Owner Withdrawls = Owner Capitol |
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Owner Capitol is transferred to next Statement.....
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Balance Sheet
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Balance Sheet
3 items on it |
Assets
Libilities Equity = Total Libilities & Equity |
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Debt to Asset Ratio
Evaluates Debt Risk |
Total Debt/Total Assets
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