Glossary of Accounting Unit 1
Other Decks By This User
- What is the Accounting Equation?
- Assets = Liabilities + Owner's Equity
- What is an Asset?
- Resources that are owned by a business.
- What is a Liability?
- Debts that are owed to creditors by a business
- What is Owner's Equity?
- The rights of the owner to the business assets.
- What is an Accounts Payable?
- Purchases by a business on account.
- What are Prepaid Expenses?
- Items such as supplies tha will be used by the business in the near future. They are assets.
- What is Revenue?
- Increases in owners equity as a result of selling services or products to customers.
- What is an Accounts Recievable?
- Debts that are owed to a business by customers.
- What is an Expense?
- The amounts used in earning revenue. Expenses include supplies used, wages.
- What is an Income Statement?
- A summary of revenue and expenses for a specific period of time. End of month or year.
- What is a Statement of Owner's Equity?
- A summary ofthe changes in the owner's equity that have occured during a period of time.
- What is a Balance Sheet?
- A list of assets,liabilities and owner's equity as of a specific date.
- What is the ratio of liabilities to owner's equity?
- Total Liabilities/Total Owner's Equity
- What is a Ledger?
- A group of accounts for a business entity.
- What is a Chart of Accounts?
- A list of accounts in the ledger.
You must Login or Register to add cards