Term
| planning, recording system, analyzing and interpreting financial information. |
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Definition
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Term
| What is an accounting system? |
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Definition
| A planned process for providing financial information that be useful to management. |
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| Organized summaries of the business's financial activities. |
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Definition
| What are accounting records? |
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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 a service business? |
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Definition
| A business that performs as activity for a fee. |
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Term
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Definition
| Anything of value that is owned. |
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| What is a proprietorship? |
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Definition
| A Business owned by one person. |
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| What dose encore music do? |
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Definition
| They rent office space and the instruments used to teach music lessons. |
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Definition
| Assets = Liabilities + Owners Equity or A=L+OE. |
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| What are some examples of assets? |
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Definition
| What are some examples of assets? |
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Definition
| Financial rights to the assets of the business. |
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Term
| A amount to owed by a business |
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Definition
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Term
| The amount leftover after subtracting liability and assets. |
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Definition
| What's owners' business equity? |
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| What services do they provide? |
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Definition
| Rent office space and instruments. |
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Term
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Definition
| A business that changes assets liabilities or owners equity |
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Definition
| an account is an record summarizing all the information penetrating a single item in the accounting equation |
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Definition
| A name given to an accountant |
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Term
| The Cash is used to summarize information about the amount of money the business has available The cash account is an asset account |
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Definition
| What is a cash account for |
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Term
| What is an account balance |
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Definition
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| The account used to summarize the owners equity in a business its also an owners equity account |
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Definition
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| What is encore music capital account called |
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Definition
| It is called Barbra Trevino, Capital account this account summarizes the owners equity in encore |
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Definition
| Is applied when a businesses' financial information is recorded and reported separately form the owners personal financial information |
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Definition
| his is applied when a business's transactions are started in numbers that have the same common values |
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Definition
| · Financial statements are prepared with the expectation that a business will remain in operation indefinitely( When u start a business u usually don’t predict the time your business will end your assuming it will go on forever |
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Term
| How do you prepare or set up a balance sheet |
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Definition
What are the steps to preparing a balance sheet- Write the heading centered on three lines at the top of the balance sheet the name of the business and the date of the report
assets are on the left side of the accounting equation prepare the asset section on the left side on the first line of the wide Colum center assets on the first lime of the wide column write each asset account title and amount
Liabilities are on the right side of the accounting equation so set up the right side center the word liability on the first line of the column under the heading put account title and amount
Owners equity is also on the right side of the equation so prepare it on the right side under the heading write the heading owners equity and account title
Add all asset amounts Add all liability amounts an owners Equity amounts if the totals equal the balance the balance sheet is balanced If the totals do not equal there are errors prepare a new sheet without errors
Rule a single line across the amount column a single line means the totals are to be added or subtracted
One the next line of the left side right write total assets and write the total asset amount of the single rule. On the right side right total liabilities and owners equity amount under the single rule on the right side
Rule double lines before the amount column totals double rule means the totals have been verified as correct |
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Term
| What are the major sections of a balance sheet |
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Definition
| . Assets are on the left side of the accounting equation so its on the left side of the balance sheet 2. The Liabilities are located on the right side of the equation so the on the right side of the sheet |
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Term
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Definition
| A financial statement that reports assets, Liabilities and owners equity on a specific date |
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