WGU VYC1 Principles of Accounting

Eight steps of the accounting cycle 1

Answer explanation

accounting cycle: Analyze transactions by examining source documents 1.

Accounts Payable

Answer explanation

Amounts a business must pay in the future.

Accounts Receivable

Answer explanation

Claims for future collection from customers.

Assets

Answer explanation

Property owned by a business.

Balance Sheet

Answer explanation

A formal report of a business' financial condition on a certain date; reports the assets, liabilities, and owner's equity of the business.

Break Even

Answer explanation

A point at which revenue equals expenses.

Business Transactions

Answer explanation

A financial event that changes the resources of a firm.

Capital

Answer explanation

Financial investment in a business; equity.

Equity

Answer explanation

An owner's financial interest in a business.

Expense

Answer explanation

An outflow of cash, use of other assets, or incurring of a liability.