An entry that increases assets or expenses and decreases liabilities or revenue.

An entry that increases liabilities or revenue and decreases assets or expenses.

Resource owned by a business that provides future benefit.

Obligation owed by a business to outsiders.

Owner’s claim on total assets.

Costs incurred to earn revenue.

Records revenues and expenses when cash is exchanged.

Reports revenues and expenses over a period.

Shows assets, liabilities, and equity at a point in time.

List of accounts and their balances used to check accuracy.

Updates accounts before financial statements are prepared.

Allocating cost of a fixed asset over its useful life.

Periodic counts periodically; perpetual updates continuously.

Inventory costing methods; LIFO assumes latest costs sold first.

Estimates uncollectible accounts through bad debt expense.

Matching company cash records to bank statement.

Cost of borrowing money over time.

Capital, drawings, and retained earnings of owners.

Stockholders’ Equity

Paid-in capital and retained earnings for corporations.

Distribution of earnings to shareholders.

Steps to record, process, and close accounting information.

Policies to safeguard assets and ensure reliable accounting.

Income from normal business operations.

Records revenues when earned and expenses when incurred

Help

Options

focusNode

Didn't know it?
click below

Knew it?
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

Exit - Accounting

Accounting 1

Term	Definition
Accounting Equation	Assets = Liabilities + Equity
Debit	An entry that increases assets or expenses and decreases liabilities or revenue.
Credit	An entry that increases liabilities or revenue and decreases assets or expenses.
Asset	Resource owned by a business that provides future benefit.
Liability	Obligation owed by a business to outsiders.
Equity	Owner’s claim on total assets.
Expense	Costs incurred to earn revenue.
Cash Accounting	Records revenues and expenses when cash is exchanged.
Income Statement	Reports revenues and expenses over a period.
Balance Sheet	Shows assets, liabilities, and equity at a point in time.
Trial Balance	List of accounts and their balances used to check accuracy.
Adjusting Entry	Updates accounts before financial statements are prepared.
Depreciation	Allocating cost of a fixed asset over its useful life.
Inventory Systems	Periodic counts periodically; perpetual updates continuously.
LIFO vs FIFO	Inventory costing methods; LIFO assumes latest costs sold first.
Allowance Method	Estimates uncollectible accounts through bad debt expense.
Bank Reconciliation	Matching company cash records to bank statement.
Interest Expense	Cost of borrowing money over time.
Owner’s Equity	Capital, drawings, and retained earnings of owners.
Stockholders’ Equity	Paid-in capital and retained earnings for corporations.
Dividends	Distribution of earnings to shareholders.
Accounting Cycle	Steps to record, process, and close accounting information.
Internal Control	Policies to safeguard assets and ensure reliable accounting.
Revenue	Income from normal business operations.
Accrual Accounting	Records revenues when earned and expenses when incurred

Created by: tahjzha

Popular Business sets

Text and Document Formatting, Arkansas Frameworks

Excel

Personal Characteristics and Skills of a Successful Entrepreneur

Examples of Personal Characteristics and Skills of a successful Entrepreneur

Glossary for Internal Operations of a Large Business

Descriptions of the 5 stages of the Entrepreneurial Process

Entrepreneurial Process Activities

Business Plan Parts

Bus Plan Parts Ex

Bizworld Vocab #1

Unit 1 - Hardware and Software

A4 CBA Excel Vocab

"Know" box contains:
Time elapsed:
Retries: