Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 2
| Term | Definition |
|---|---|
| T account | An accounting devise used to analyze transactions. |
| Credit | An amount recorded on the right side of an account. |
| Assets | Anything of value that is owned. |
| Expenses | The cost of goods or services used to operate a business. |
| Accounts Receivable | Accounts to be received in the future due to the sale of goods or services. |
| FYI – Decreasing an account | If on asset side of the equation, decrease in credit. if on liability or equity side of equation, then decrease in debit. |
| Normal balance | The side of the account that is increased. |
| Chart of Accounts | A list of accounts used by a business. |
| Liabilities | An amount owed. |
| Withdrawal | Assets taken from a business for the owners personal use. |
| Accounting Equation | An equation showing the the relationship among assets, liabilities and Owners Equity. |
| FYI – 4 questions to analyzing a transaction | 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? |
| Debit | An amount recorded on the left side of an account. |
| Revenue | Cash received for the sale of goods or services. |
| Owner’s Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Accounts Payable | Amounts to be paid in the future for goods or services already acquired. |
| FYI – Debit/Credit meaning | debit on left, credit on right |
Created by:
andrew.v
Popular Accounting sets