Bookkeeping chapter 1
Liability - Answer- Debt owed to others
Fiscal year - Answer- Only 12 consecutive months for an accounting period
Bookkeeping - Answer- A process of recording business transaction in a set of books
Accounts payable - Answer- Debt owing to suppliers
Accounts rece...
Bookkeeping chapter 1
Liability - Answer- Debt owed to others
Fiscal year - Answer- Only 12 consecutive months for an accounting period
Bookkeeping - Answer- A process of recording business transaction in a set of books
Accounts payable - Answer- Debt owing to suppliers
Accounts receivable - Answer- Amounts going to the business from its customer
Account - Answer- A concise record of increase and decrease affecting a given
financial item
Accountant - Answer- One who
designs and maintains accounting systems, prepares financial statements and
analyzes and interprets Financial information
Accounting - Answer- The process of interpreting and communicating the financial
information complied in the bookkeeping records
Accounting period - Answer- The period of the time covered by the income statement
usually one year
Balance sheet - Answer- A financial statement of the assets, liabilities and owner
equity.
Debit - Answer- The accounting term that refers to the left side of the account
Donations - Answer- An expense account to record contributions to charities and
other similar organizations
Expenses - Answer- The cost of operating a business
Define GAAP - Answer- Generally accepted accounting principles
What are the three forms of business organizations - Answer- Proprietorship,
partnership, corporation
Source documents - Answer- Business documents that contain information
supporting the facts of a business transaction
Merchandise sale - Answer- A revenue account that is credited when merchandise is
sold, whether sold for cash, on account, or on debit/credit cards often called sales
How does proprietorship differ from partnership - Answer- Proprietorship is one
owner and partnership has two or more owners sharing the business
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