Term
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Definition
| lanning, recording ,analyzing, financial data. |
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Term
| What is Accounting System? |
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Definition
| A planned process for providing financial information that will be useful to management. |
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Term
| What are accounting records? |
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Definition
| Organized summaries of a business financial activities. |
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Term
| What often contributes to business failures or bankruptcy? |
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Definition
| naccurate accounting records. |
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Term
| What is service business? |
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Definition
| A business that performs are activity for a fee .. |
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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 does Encore Music do? |
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Definition
| They rent office space and the instrument used to tech music lessons. |
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Term
| Assets =Liabilities +Owner's Equity |
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Definition
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Term
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Definition
| Anything of value that is owned. |
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Term
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Definition
| Financial rights to the assets of a business. |
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Term
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Definition
| An amount own by business. |
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Term
| What is the owner's equity? |
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Definition
| The amount left over after subtracting liabilities from assets. |
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Term
| What is important to remember about the Accounting Equation? |
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Definition
| It MUST be in balance in order to be correct. This means that the total of accounts on the left side of the equation must always equal the total of the account on the left side of the equation |
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Term
| What is a transaction? A transaction is a business activity that changes assets, liabilities, or owner's equity. |
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Definition
| A transaction is a business activity that changes assets, liabilities, or owner's equity |
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Term
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Definition
| An accounts a record summarizing all the information pertaining to a single item in 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
| The Cash account is used to summarize information about amount of money the business has available. The Cash account is asset account. |
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Term
| What is the account balance? T |
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Definition
| The amount in an account. |
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Term
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Definition
| The account used to summarize the owners equity in a business. The capital account in a owner's equity account. |
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Term
| What is Encore Music Capital Account called? |
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Definition
| Barbara Trevino, Capital this account summarize the owner's equity in Encore. |
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Term
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Definition
| A financial statement that reports assets,liabliities and owner's equity on a specific date. |
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Term
| What are the major sections of a balance sheet?What are the steps to prepare a balance sheet? |
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Definition
| rite the heading centered on the top three lines of the balance sheet: the name of the report (Balance Sheet) and the date of the report.2.-Prepare the Liablities section. Center the word "Liablities on the first line of the wide column on the right. Under this heading, write each assets account and amount.3- Prepare the Liablities section. Center the word ''Liablities on the first line of the wide column on the right. Under this heading write each liability account and amount.4.-Prepare the Owner's Equity section. Center the words "Owners Equity'' on the next blank line under the Liablities section. Under the heading write the Owner's Equity account title and amount.5.-Add all the assets accounts. Add the Liablities and owner's equity amounts. If the totals equal, the balance sheet in balance (correct)6.-Rule the single line across each amount column. A single line means that the amounts are to be added or subtracted.7.-On the next line of the left side, write Total Assets and write asset amount under the single rule. On the right side, write Total Liablities and Owners Equity amount under the single rule.8.Rule double lines below the amount column totals. Double rules means that the total have been verified as correct. |
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