Basic Accounting

Accounting is referred to as the "language of ___________________."

• profit

• life

• work

• business

Amount owed by a business

• liability

• asset

• capital

• account

What is assets?

• Cash in the business      

• Anything that a creditor has financial claim to

• What remains after liabilities are paid

• Any item or property owned by the business

The left side of a T-Account is called

• debit

• credit

• left side

• right side

It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.

• Bookkeeping    

• Journalizing

• Accounting

• Auditing

How would an accountant record an increase in cash?

• debit

• credit

How would an accountant record an increase in sales?

• debit

• credit

An accounting device used to analyze transactions.

• T - account

• temporary account        

• personal account

• permanent account

A Bank Loan is classified as a:

• revenue

• expense

• asset

• liability

The owner invests personal cash in the business. Assets will

•  increase

• decrease

• no effect