Shared Flashcard Set

Details

Introductory Accounting Terms
Basic accounting terms
16
Accounting
12th Grade
09/24/2008

Additional Accounting Flashcards

 


 

Cards

Term
Asset Debit or Credit?
Definition
Anything of value that is OWNED by the firm. A DEBIT balance.
Term
Liability Debit or Credit?
Definition
Anything that is OWED and is a claim against the firm's assets. A CREDIT balance.
Term
Capital Debit or Credit?
Definition
The owner's claims against the assets. Also called Owner's Equity. A CREDIT balance.
Term
Revenue Debit or Credit?
Definition
Money coming into the firm through sales. Increases capital. A CREDIT balance.
Term
Cost Debit or Credit?
Definition
An increase in assets through INVENTORY or goods for sale. A DEBIT balance.
Term
Expense Debit or Credit?
Definition
Money going out of the firm through the payment due to the firm's operations. Decreases capital. A DEBIT balance.
Term
Source Document
Definition
Proof that a legal transaction occurred.
Term
Accounting Equation
Definition
Assets = Liabilities + Capital
Term
Debit
Definition
The LEFT side.
Term
Credit
Definition
The RIGHT side.
Term
Journal
Definition
A form for recording transactions in chronological order.
Term
Ledger
Definition
A group of accounts.
Term
Account
Definition
A record that summarizes all the information pertaining to a single item.
Term
General Ledger
Definition
A ledger that contains all accounts needed to prepare financial statements.
Term
Profit and Loss Statement
Definition
A financial statement showing the revenue and expenses for a fiscal period. Also called an Income Statement or P and L.
Term
Balance Sheet
Definition
A financial statement that reports assets, liabilities , and owner's equity on a specific date.
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