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Definition
| Anything of Value that is owned |
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| The amount remaining after all value of all liabilities is subtracted from the value of all assets |
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| A planned process for providing financial information that will be usefull to management. |
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| Organized summaries of a business's financial activities |
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| Financial Reports that summarize the financial conditions and operations of a business. |
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| The use of ethics in making business decisions |
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| A business that performs an activity for a fee |
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| Financial rights to the assets of a business |
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| A business owned by one person |
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| A record summarizing all the information pertaining to a single item in the accounting equation. |
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| An increase in owner's equity resulting from the operation of a business. |
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| Planning, recording, analyzing, and interpreting financial information. |
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An Equation showing the relationship among assets, liabilities, and owner's equity.
Assets = Liabilities + Owners Equity |
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| The principles of right and wrong that guide an individual in making decisions. |
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Definition
| The account used to summarize the owner's equity in the business |
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| An amount owed by a business |
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Definition
| A decrease in owner's equity resulting from the operation of a business |
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Definition
| The name given to an account |
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Definition
| A business activity that changes assets, liabilities, or owner's equity. |
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Definition
| Assets taken out of a business for the owner's personal use. |
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Definition
| A sale for which cash will be received at a later date. |
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Definition
| Payments for advertising, equipment repairs, utilities, and rent are expense transactions. |
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Definition
| When an owner withdraws cash from the business, the transaction afects both assets and owner's equity. |
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Definition
| Withdrawals are assets taken out of a business for the owner's personal use. |
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Which accounts are change and how by the following transaction:
Paid cash for telephone bill |
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Definition
Cash - down
Owners Equity - down |
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Term
Which accounts are affected by the following transaction, how are the accounts affected?:
Recievaed cash from owner as an investment |
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Definition
Cash - UP
Owners Equity - UP |
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Which accounts are affected by the following transaction? How are the accounts affected?
Paid cash for rent |
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Definition
Cash - Down
Owners Equity - Down |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Received cash on account from Dietrich farms |
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Definition
Cash - UP
Accounts Receivable Dietrich Farms - DOWN |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Paid cash for one month of insurance |
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Definition
Cash - DOWN
Pre-Paid Insurance - UP |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Received cash from sales (aka revenue) |
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Definition
CASH - UP
Owners Equity - UP |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Bought supplies on account from Allen Supply Depot |
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Definition
Supplies - UP
Accounts Payable Allen Supply Depot - UP |
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Which accounts are affected by the following transaction? How are the accounts affected?
Paid cash to owner for personal use |
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Definition
CASH - DOWN
Owners Equity - DOWN |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Sold servides (Revenue) on account to Johanson Equipment
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Definition
Owners Equity - UP
Accounts Receivable Johanson Equipment - UP |
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Term
Which accounts are affected by the following transaction? How are the accounts affected?
Paid cash for supplies |
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Definition
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Term
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Definition
| The most common type of withdrawal by an owner from a business is the withdrewal of cash. |
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Term
| After each transaction, the accounting equation must remain in balance. |
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Definition
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| A transaction for the sale of goods or servies (Revenue) results in a increase in owner's equity |
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Definition
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The accounting equation is most often stated as:
Assets = Liabilities + Owners Equity |
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Definition
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| When two assets accounts are changed in a transaction, there must be an increase and a decrease. |
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| When financial records for a business and for its owner's personal belongings are not mixed, this is an application of the Business Entity acounting concept. |
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| The Capital account is an Owners Equity Account |
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| The total Owner's Equity is the amount the owner has invested in the business |
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| An expense is a decrease in owner's equity resulting from the operation of a business. |
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Definition
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| Detailed information about changes in owner's equity is needed by owners and managers to make sound business decisions |
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