What is a general ledger?
A general ledger account is an account or record used to sort, store and summarize a company's transactions.
asset accounts such as Cash, Accounts Receivable, Inventory, Investments,
Land, and Equipment
liability accounts including Notes Payable, Accounts Payable, Ac...
What is a general ledger?
A general ledger account is an account or record used to sort,
store and summarize a company's transactions.
asset accounts such as Cash, Accounts Receivable, Inventory,
Investments,
Land, and Equipment
liability accounts including Notes Payable, Accounts Payable, Accrued
Expenses Payable, and Customer Deposits
stockholders' equity accounts such as Common Stock, Retained
Earnings, Treasury Stock, and Accumulated Other
Comprehensive Income
What is the difference between accounts payable and accounts
receivable? Accounts payable is a current liability account in which a
company records the amounts it owes to suppliers or vendors for
goods or services that it received on credit.
Accounts receivable is a current asset account in which a company
records the amounts it has a right to collect from customers who
received goods or services on credit.
What is the cost of goods sold?
The cost of goods sold is the cost of the products that a retailer,
distributor, or manufacturer has sold.
What is owner's equity?
Owner's equity is one of the three main sections of a sole
proprietorship's balance sheet and one of the components of the
accounting equation: Assets = Liabilities + Owner's Equity.
What is principles of accounting?
Principles of accounting can also refer to the basic or fundamental
accounting principles: cost principles, matching principles, full
disclosure principles, materiality principles, going concern principles,
economic entity principles, and so on. In this context, principles of
accounting refers to the broad underlying concepts which guide
accountants when preparing financial statements.
What is equity?
Equity can indicate an ownership interest in a business, such as
stockholders' equity or owner's equity.
Equity can mean an owner's interest in a personal asset. For example,
the owner of a $200,000 house that has a mortgage loan of $75,000 is
said to have
$125,000 of equity in the house.
What is meant by reconciling an account?
Reconciling an account is likely to mean proving or documenting that
an account balance is correct.
What is included in cash and cash equivalents?
In accounting, a company's cash includes the
following: currency and coins
, checks received from customers but not yet
deposited checking accounts
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FLOYYD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
