Reading...
Play button
Play button
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;
30 Cards in this Set
- Front
- Back
|
Investment by owner
|
Debit- cash
Credit- common stock |
|
|
Purchase supplies for cash
|
Debit-Supplies
Credit- cash |
|
|
Purchase equipment for cash
|
Debit-Equipment
Credit- cash |
|
|
Purchase supplies on credit
|
Debit-Supplies
Credit- accounts payable |
|
|
Provide services for cash
|
Debit-Cash
Credit- revenue |
|
|
Payment of expenses cash
|
Debit- type of expense
Credit- cash |
|
|
Provide services for credit
|
Debit-Accounts receivable
Credit- revenue |
|
|
Receive a payment from accounts receivable
|
Debit-Cash
Credit- accounts receivable |
|
|
Payment of accounts payable
|
Debit-Accounts payable
Credit- cash |
|
|
Payment of cash dividend
|
Debit-Dividend
Credit- cash |
|
|
Payment of cash from customer for future services
|
Debit- cash
Credit- unearned revenue |
|
|
Pay cash for future insurance coverage (prepay for insurance)
|
Debit- prepaid insurance
Credit- cash |
|
|
Assets =
|
Liability + Equity
|
|
|
Other parts of equity are
|
+revenue
-expenses +common stock -dividends |
|
|
Left side of an account:
|
Debit side
|
|
|
Right side of an account:
|
Credit side
|
|
|
Account balance is
|
Difference between the total debits and total credits recorded in an account
|
|
|
Normal Balance side for Liabilities and Equities
|
Right side/credit side
|
|
|
Equity increases from
|
Revenues and stock issuances
|
|
|
Equity decreases from
|
Expenses and dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets are
|
Resources owned or controlled by a company
Cash, accounts receivable, note receivable, prepaid accounts, supplies, equipment, buildings, land |
|
|
Liabilities are
|
Creditors' claims on assets
Accounts payable, note payable, unearned revenue, accrued liabilities |
|
|
Equities are
|
Common stock, dividends, revenues, and expenses
|
|
|
Ledger accounts
|
Sum of all the accounts a company uses
|
|
|
Increases (credits) to common stock and revenues:
|
Increase Equity
|
|
|
Increases (debits) to dividends and expenses:
|
Decrease Equity
|
|
|
Total amount that is debited to accounts must equal
|
The total amount credited to accounts for each transition.
|
