Accounting 101

Question 1

Accounting

Answer 1

El proceso de escribir o anotar todas las transacciones finacieras regularmente

Question 2

Debit consists of

Answer 2

Assets and Expenses

Question 3

Assets

Answer 3

Cualquier cosa que me pertenece que tiene valor, y que puede convertirse en cash, como un a casa o un coche, dinero en el banco (L+E)

Question 4

Expenses

Answer 4

Gastos: electricidad, seguro medico, alquiler, salario de empleados

Question 5

Credits consist of

Answer 5

Liabilities and Sales

Question 6

Liabilities

Answer 6

Money/cash I owe, like a mortgage, deudas, tarjeta de credito, suppliers you need to pay, capital money that the owner of the company uses to start the biz and the biz owed to the owner.

Question 7

Sales

Answer 7

The money I earn

Question 8

Capital

Answer 8

wealth in the form of assets (money, equipment…) owned that you use to start a business or investment.

Question 9

Current Assets

Answer 9

Highly liquid: + bank balance, cash, stock

Question 10

Fixed Assets

Answer 10

Not as liquid: PPE - property, plant & equipment

Question 11

Double-entry bookkeeping

Answer 11

every time we post a transaction into our ledgers or accounts, we post 2 transactions: a debit transaction & a credit transaction

Question 12

Ledger or T account

Answer 12

An account with space for debit & credit entries, you usually have numerous of them, i.e. bank account, capital, purchase & sale

Question 13

Debit & credit

Answer 13

In some accounts, like a bank a/c, debit is an increase and credit a decrease, but not always PEARLS - so you know where to post new entries depending on which account

Question 14

DEBIT

Answer 14

PEA: Purchases, Expenses, Assets accounts

Question 15

CREDIT

Answer 15

RLS: Revenue, Liabilities, Sales accounts