Chapter 1 Flashcards
Things we own are called?
Assets
Things we owe are called?
Liabilities
Vehicles, buildings, land, cash etc. When you have something you own are all?
Assets
A party owes you money, but what we own is the right to be paid, is called?
Accounts Receivable
A party owes you money and you own the right to be paid, is called?
Notes Receivable
The Accounting Equation Assets =
Assets = Liabilities + Equity
An account payable, wages payable, taxes payable, interest payable. If a word has payable then it is a _________.
Liabilities
Unearned revenues is?
Liabilities
When service is owed, it is called?
Unearned revenue
What is left over if we use our assets to pay off our liabilities?
Equity.
The Accounting Equation Equity =
Equity = Assits - Liabilities
The Accounting Equation broken down further Assets =
Equity = Contributed Capital + Retained Earnings
Owners put their personal assets into the business is called?
Contributed Capital
Contributed Capital + Retained Earnings=
Equity
Someone has pad us in advance but we did not do what we were suppose to do with it, this is called?
What we owe is service or unearned merchandise.
Liabilities
Net Income - Dividends =
Retained Earnings
What are assets that are distributed to owners called?
Dividends
So we are giving cash or other assets back to the owner.
Revenues - Expenses =
Net Income
Our net earnings are accumulated from the day we start the business until now that is called ?
Retained Earnings
except what we paid back to our owners
What we earn by the work that our business does is called?
Net Income
An accounting firm anytime that they do work for a client, accounting work, tax work or consulting and we earn cash from that, it is called?
Revenues
If you are an auto dealer and you sell a car, the money would be considered?
Revenue to us.
If you are paying college tuition, the money you are paying would be called?
Reverent to the college
What we use up is called?
Expenses
There are lots of expense; utility expense, wage expense, and so on.
