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A device for recording the changes (increases or decreases) in the fundamental accounting elements.
A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data.
The difference between the total debits and the total credits in an account.
An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.
Property of monetary value owned by a business.
Chart of Accounts
A list of all the account titles and the account numbers assigned to them.
The sorting of the many business transactions in an orderly and systematic manner; sorting or grouping like things together.
Double Entry Accounting/Bookeeping
The process of recording equal debits and credits for a single business transaction.
Any consecutive 12 months period.
A condition in which the totals of debits and the total of credits are equal in an account.
Explaining the significant events or developments that occur, usually taking the form of analysis and compairisons
A book of original entry.
The process of recording business transaction in a Journal
Net Profit ( Net Income)
The difference between gross profit and expenses when gross profit is larger.
The difference between gross profit and expenses when the expenses are larger.
A written promise to pay a creditor a certain amount in the future.
The transferal of data from the journal to the ledger
Bringing accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements; bringing together various items of information to determine or explain a result.
A skeleton form of an account used for instructional purposes.
Any activity of a business enterprise that involves the exchange of values
A work paper proving the equality of the debit and credit balances in the ledger
What is the abbreviation for debit and credit?
DR and CR
What is included in a Trial Balance?
A list of all accounts showing the title and balance of each account. By totaling the debits and credits their equality can be tested.
What is included in an Income Statement?
Reports net income or loss. Revenues-Expenses =Net Income or Loss
What is included in a Balance Sheet?
Verifies balance of accounting equation. Assets=Liabilities + Owner's Equity
What is included in the Statement of Owners Equity?
- Shows changes in the owner's capital account
- Beginning Capital + Investments + Net Income - Withdrawals = Ending Capital
Debit and Credit side of Standard Account
- Left --> Debit
- Right--> Credit
Numbers associated with account in Chart of Accounts?
- Assets (100-199)
- Liabilities (200-299)
- Owner's Equity (300-399)
- Revenues (400-499)
- Operating Expenses (500-599)
What are the other names for Balance Sheet?
- 1. Statement of Financial Position
- 2. Statement of Financial Condition
What are some examples of Temporary Owner's Equity Accounts?
Fundraiser? Anything that is a one time or temporary (short-term) source of money or revenue.
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