Acctg 131 Mod 2 Flashcards
An _______ is the basic storage of
information in accounting.
Account
An account is the basic storage of
information in accounting. It is a record
of?
The increases and decreases in a
specific item of asset, liability, equity,
income or expense.
The term credit means?
Simply refers to the right side of the T account or Journal. It is also referred to as value parted with
The term debit means?
Simply refers to the left side of the T account or Journal. It is also referred to as value received
The difference between total debit and credit represents the balance of the account, what happens when one side exceeds the other?
If debits>credits then it is a debit balance
If credits>debits then it is a credit balance
These are the resources you control that have resulted
from past events and can provide you with future economic
benefits.
Assets
What is the latin word for debit and credit?
Debere and Credere (Dr./Cr.)
This is assets minus liabilities.
Equity
These are your present obligations that have resulted
from past events and can require you to give up resources
when settling them.
Liabilities
These are increases in economic benefits during the period
in the form of inflows or enhancements of assets or decreases
of liabilities that result in increases in equity, other than those
relating to investments by the business owners.
Income
What is in a balance sheet account?
- Assets
- Liabilites
- Equity
This is a list of all the
accounts used by a business.
Chart of Accounts
These are decreases in economic benefits during the
period in the form of outflows or depletions of assets or
increases of liabilities that result in decreases in equity, other
than those relating to distributions to the business owners.
Expenses
What is in an Income statement account?
- Income
- Expenses
This is the accounting record where
business transactions are first recorded.
Journal
Also called book of Original Entries
This is used to record transactions
with similar nature (e.g., Sales journal, Purchases
journal, Cash receipts journal, and Cash
disbursements journal)
Special Journal
All other transactions that
cannot be recorded in the special journals are
recorded in?.
The general journal
This used to classify the effects of
business transactions on the accounts.
It is also called the “book of final entries.”
This contains all the accounts
appearing in the trial balance.
General Ledger
This provides a breakdown of
the balances of controlling accounts.
Subsidiary Ledger
This concept is each transaction is
recorded in two parts– debit and credit
Concept of Duality
This concept is each transaction is recorded in terms of equal
debits and credits.
Concept of equilibrium
These are presented in the
financial statements as deduction to
their related accounts.
Contra Accounts
These are presented in the
financial statements as addition to their
related accounts
Adjunct Accounts
