Accounting Basics

Front

Planning, recording, analyzing, and interpreting financial information

Back

Accounting

Front

Anything of value that is owned

Back

Asset

Front

An amount owed by a business

Back

Liability

Front

The amount remaining after the value of all liabilities is subtracted from the value of all assets.

Back

Owner's Equity

Front

An accounting device used to analyze transactions

Back

T-Account

Front

An amount recorded on the left side

Back

Debit

Front

An amount recorded on the right side

Back

Credit

Front

What is the accounting equation?

Back

Assets = Liabilities + Owner's Equity

Front

Assets are $50,000. Liabilities are $12,000. What is Owner's Equity?

Back

$38,000

Front

Assets are $120,000. Owner's Equity is $95,000. What is the Liability?

Back

$25,000