Term
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Definition
| Accounting is planning, recording, analyzing and interpreting financial information. |
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Term
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Definition
| Anything value that is owned. |
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Term
| What is accounting records? |
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Definition
| Organized summaries of a business's financial activities. |
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Term
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Definition
| Financial rights to the asset of a business. |
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Term
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Definition
| An amount owed by a business . |
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Term
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Definition
| The amount left over after subtracting liabilities from assets. |
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Term
| What does Encore Music Do? |
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Definition
| They rent office space and the instruments used to teach music lessons. |
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Term
| What is a proprietorship? |
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Definition
| A business owned by one person. |
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Term
| What is service business? |
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Definition
| A business that performs an activity for a fee . |
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Term
| What often contributes to business failures or bankruptcy? |
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Definition
| Inaccurate accounting records. |
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Term
| What is accounting records? |
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Definition
| Organized summaries of a business's financial activities. |
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Term
| what is accounting system? |
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Definition
| Accounting system is a planned process for providing financial information that will be useful to management. |
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Term
| what is accounting system? |
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Definition
| Accounting system is a planned process for providing financial information that will be useful to management. |
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Term
| ยท What is important to remember about the Accounting Equation? |
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Definition
| It is important to remember that the assets are to the left and the liabilities and owner's Equity to the right. Also that liabilities and Owner's Equity equal Assets. |
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Term
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Definition
| A business activity that changes asset, liabilities, or owner's equity. |
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Term
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Definition
| A record summarizing all the information pertaining to a single item the accounting equation. |
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Term
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Definition
| The name given to an account. |
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Term
| What is the Cash account for? |
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Definition
| Amount of money the business has available. The Cash is an asset account. |
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Term
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Definition
| A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
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Term
| What are the major sections of a balance sheet? |
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Definition
1. Assets located on the left side of the accounting equation , which means that assets are also listed on the right side of the balance sheet.
2. Liabilities - located on the right side of the accounting equation , which means is also located on the right side of the balance sheet.
3. Owner's equity- located on the left side of the accounting equation , which means is also located on the left side of the balance sheet. |
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Term
| What are the steps to a Balance sheet? |
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Definition
1. Write the heading centered on the three lines at the top of the balance sheet: the name of the business, the name of the report, and the date of the report.
2. Assets on the left side. Centered word Assets on the first line column. Under heading, write each asset account title and amount.
3. Liabilities section on the right side. Centered the word liabilities on the first line wide column. Under it write each liability account title and amount.
4. Owner's equity section on the right side. Centered the words Owner's equity on the next blank line. Under the heading write each owner's equity account and title.
5. Add all assets amounts. Add the liabilities and owner's equity amounts. If the totals equal the balance sheet is in balance. If is not equal do another sheet without errors.
6. Rule single line across each amount means that amount are added or subtracted.
7. On the next line on the left side write total Assets and write the total asset amount under the single line also the total liabilities and owner's equity under the single line.
8. Rule double lines below the amount column totals. Double rule means that the total have been verified as corrected. |
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