Flashcards
Bookkeeping Basics
Cards in this deck (12)
- 1Definition of AccountingLogical process for keeping records.
Art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are of a financial character, and interpreting the results. - 2AccountRecord Pertaining to a single item in the accounting equation that summarizes all info about that item. (e.g. - Cash - account that summarizes al info about money available in the business)
- 3Account TitleName given to each account.
- 4Account BalanceAmount in each account
- 5TransactionAny activity that occurs in the business that changes part of the accounting equation (assets, liabilities, owner's equity)
- 6AssetsEverything of value owned and used in business
- 7LiabilitiesAny money owed
- 8Owner's Equity (Capital)What the business is worth to the owner
Assets (value of items owned) - Liabilities (value of items owed) - 9Capital accountaccount that summarizes the owner's equity
- 10The Accounting EquationAssets = Liabilities + Owner's Equity
Each sides value may change but the two sides must always be equal - 11Accounts Payable(A/P) Liability Account
- 12BookkeepingMaintaining financial records for a business
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- Bookkeeping Accounting Flashcards on Bookkeeping Basics, created by Amy Pflum on 05/01/2021.
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- Amy Pflum
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