Term
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Definition
| Anything of value that is OWNED by the firm. A DEBIT balance. |
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Term
| Liability Debit or Credit? |
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Definition
| Anything that is OWED and is a claim against the firm's assets. A CREDIT balance. |
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Definition
| The owner's claims against the assets. Also called Owner's Equity. A CREDIT balance. |
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Definition
| Money coming into the firm through sales. Increases capital. A CREDIT balance. |
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Term
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Definition
| An increase in assets through INVENTORY or goods for sale. A DEBIT balance. |
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Term
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Definition
| Money going out of the firm through the payment due to the firm's operations. Decreases capital. A DEBIT balance. |
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Term
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Definition
| Proof that a legal transaction occurred. |
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Term
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Definition
| Assets = Liabilities + Capital |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| A form for recording transactions in chronological order. |
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Term
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Definition
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Term
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Definition
| A record that summarizes all the information pertaining to a single item. |
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Term
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Definition
| A ledger that contains all accounts needed to prepare financial statements. |
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Term
| Profit and Loss Statement |
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Definition
| A financial statement showing the revenue and expenses for a fiscal period. Also called an Income Statement or P and L. |
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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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