Accounting Basics

Planning, recording, analyzing, and interpreting financial information

• Accounting

• Asset

• Liability

• Owner's Equity

Anything of value that is owned

• Accounting

• Asset

• Liability

• Owner's Equity

An amount owed by a business

• Accounting

• Asset

• Liability

• Owner's Equity

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

• Accounting

• Asset

• Liability

• Owner's Equity

An accounting device used to analyze transactions

• T-Account

• Debit

• Credit

• Chart of Accounts

An amount recorded on the left side

• T-Account

• Debit

• Credit

• Chart of Accounts

An amount recorded on the right side

• T-Account

• Debit

• Credit

• Chart of Accounts

What is the accounting equation?

• Assets + Liabilities = Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets = Liabilities - Owner's Equity

• Owner's Equity = Assets + Liabilities

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

• $38,000

• $62,000

• None of the Choices

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

• $215,000

• $25,000

• None of the Choices