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15 Cards in this Set
- Front
- Back
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What is the Accounting Equation?
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Assets = Liabilities + Owner's Equity
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What is an Asset?
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Resources that are owned by a business.
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What is a Liability?
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Debts that are owed to creditors by a business
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What is Owner's Equity?
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The rights of the owner to the business assets.
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What is an Accounts Payable?
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Purchases by a business on account.
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What are Prepaid Expenses?
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Items such as supplies tha will be used by the business in the near future. They are assets.
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What is Revenue?
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Increases in owners equity as a result of selling services or products to customers.
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What is an Accounts Recievable?
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Debts that are owed to a business by customers.
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What is an Expense?
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The amounts used in earning revenue. Expenses include supplies used, wages.
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What is an Income Statement?
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A summary of revenue and expenses for a specific period of time. End of month or year.
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What is a Statement of Owner's Equity?
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A summary ofthe changes in the owner's equity that have occured during a period of time.
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What is a Balance Sheet?
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A list of assets,liabilities and owner's equity as of a specific date.
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What is the ratio of liabilities to owner's equity?
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Total Liabilities/Total Owner's Equity
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What is a Ledger?
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A group of accounts for a business entity.
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What is a Chart of Accounts?
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A list of accounts in the ledger.
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