Accounting Ch 1

The language of business

• Accounting

• French

• Finance

• ...is business

The organizing, filing, planning, and analyzing of financial decisions

• Accounting files

• Finance

• Accounting System

• Bank System

A single business owners

• corporation

• partnership

• franchise

• proprietorship

Anything of value to help run a business

• liabilities

• revenues

• assets

• expenses

Assets- Liabilities= ???

• cash

• owner's equity

• revenue

• sales

What is the accounting equation?

• K+F+C= KFC

• A= L+OE

• A=L-OE

• E=MC

A code of conduct a business should follow

• moral code

• ethics

• secret society handshake

• the DaVinci Code

Something you owe. Debt

• Asset

• Equity

• Liability

• Expense

What is affected: received cash for services performed.

• Asset (cash). Liability (Accounts Payable). Both go up

• Asset (supplies). Owner's Equity (Fees Earned). Both go down

• Asset (cash). Owner's Equity (Fees Earned). Both go up

• Liability (Accounts Payable). Owner's Equity (Investment). Both go up

Which group are Owner's Equity Accounts?

• cash, supplies, land, Accounts Receivable

• Investment, revenue, fees earned

• accounts payable, cash, accounts receivable