Account Classifications and Rules of Debits & Credits Flashcards
1
Q
Resources owned by the company (e.g., Cash, Accounts Receivable, Equipment).
A
Assets
2
Q
Obligations owed to outsiders (Accounts payable, loans payable)
A
Liabilities
3
Q
Owners claims on assets (Common stock, retained earnings)
A
Equity
4
Q
Earnings from the sale of goods or services (Sales revenue, service income)
A
Revenue
5
Q
Costs incurred in the process of earning revenue (rent, salaries, utilities)
A
Expenses
6
Q
Cash
A
Asset
7
Q
Accounts receivable
A
Asset
8
Q
equipment
A
Asset
9
Q
Accounts payable
A
Liability
10
Q
Loans payable
A
Liability
11
Q
Common stock
A
Equity
12
Q
Retained earnings
A
Equity
13
Q
Sales revenue
A
Revenue
14
Q
Service income
A
Revenue
15
Q
Rent
A
Expense
16
Q
Salaries
A
Expense
17
Q
Utility
A
Expense
