ACT Chap 1-4 Review

Anything that you own that has value

• asset

• liability

• owner's equity

Amount owed by a business

• asset

• liability

• owner's equity

Accounting Equation

• asset = liabilities - owner's equity

• assets + liabilities = owner's equity

• assets = owner's equity - liabilities

• assets = liabilities + owner's equity

Difference between assets and liabilities

• equity

• dollars

• cents

• assets

Principles of right and wrong that guide business decision making

• Ethics

• Business ethics

GAAP

• Generally Accepted Accounting Principles

• Generally Accepted Accounting Principals

• Generally Acceptable Accounting Principles

• Geese Are Actually People

Cash

• asset

• liability

• OE

Accounts Receivable

• asset

• liability

• OE

Accounts Payable

• asset

• liability

• OE

Sales, Expenses, Drawing, Capital

• asset

• liabilitiy

• OE