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8 Cards in this Set
- Front
- Back
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What is the acct. equation?
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Assets= Liabilities + Stockholders' Equity
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What are Assets?
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things owned by the business
*Cash *Accounts Rec'v -money owed by customers *Equipment, supplies,land |
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What is Liabilities: debts
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*Acct payable:amounts owed to creditors for things bought on credit/money owed to people
*Borrowed money Wages owed to employees. |
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What is Stockholders' equity?
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*Stockholders' equity is what left after liabilities are paid from assests.
*Contributed Capital-amounts invested in business by stockholders *Retained earnings: amount of profit that is kept in the Co. |
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3 transactions the affect retained earnings?
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1. Revenue: (increases retained earnings)
2. Expenses (decreases retained earnings) 3.Dividends (decreases Retained earnings) |
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Name 3 transactions that affect Retained earnings?
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1. Revenue (increases RE)
2. Expenses (decrease RE) ex. rent, utilities, wages and insurance. 3. Dividends (decreases RE) ex. earnings of a business that are distrubed to Stockholders 3. |
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The affect of purchasing an asset w/cash is?
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Will be + for an asset and a minus for cash, because you paid cash.
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The affect of purchasing an asset on credit is?
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Will be recorded under Acct. Payable which will be a +.
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