Equation Analysis Sheet:

It's a tool to show the individual transactions and the new financial position resulting from each transaction.

Identify and make changes to assests

Taking off a Trial Balance is a simple procedure used to find out if the ledger is in balance

The new accounts in equity have one main purpose

What is 1 of the 5 Main activities

Gathering financial information

Generating funds for the buisness

What is NOT one of the 5 Main activities

Preparing receipts to collect funds made

Preparing and collecting permanent records

Rearranging, summarizing, and classifying financial information

Preparing information reports and summaries

Business Entity Concept:

This means the owner of the business should not place any personal assets on the business balance sheet

Continuing Concern Concept assumes that a business will continue to operate unless it is known that it will not

accountants to record the value of assets at their historical cost price

requires that a businesses accounting be recorded on the basis of clear, verifiable evidence

requires accountants to record the value of assets at their historical cost price

assumes that a business will continue to operate unless it is known that it will not

the owner of the business should not place any personal assets on the business balance sheet

Continuing Concern Concept

assumes that a business will continue to operate unless it is known that it will not

Is an accounting standard that provides accounting information will take place over specific time periods known as fiscal periods

Requires revenue to be recorded in the accounts at the time the transaction is completed

States that each expense item related to revenue earned must be record in the same period as the revenue it helped to earn

when money is received from a debtor to reduce the amount

if money is paid out to a creditor to decrease the amount owed

Objectivity Principle

requires that a businesses accounting be recorded on the basis of clear, verifiable evidence

assumes that a business will continue to operate unless it is known that it will not

States that each expense item related to revenue earned must be record in the same period as the revenue it helped to earn

What is the bottom line?

The double line signifying that you are done tallying

The last account on a financial statement

Revenue Recognition Principle

Requires revenue to be recorded in the accounts at the time the transaction is completed

Is an accounting standard that provides accounting information will take place over specific time periods known as fiscal periods

States that each expense item related to revenue earned must be record in the same period as the revenue it helped to earn

process of recording accounting entries in the journal

Is an accounting standard that provides accounting information will take place over specific time periods known as fiscal periods

A business form showing the details of a transaction in which goods or services

The fiscal period (also known as the financial period or accounting period) is the period of time over which earnings is measured

States that each expense item related to revenue earned must be record in the same period as the revenue it helped to earn

This means the owner of the business should not place any personal assets on the business balance sheet

requires that a businesses accounting be recorded on the basis of clear, verifiable evidence

assumes that a business will continue to operate unless it is known that it will not

Every accounting entry is recorded first in the journal

A business form showing the details log a transaction

is the process of recording accounting entries in the journal

A business form showing the details log a transaction in which goods or services are sold to a customer for cash

A business form representing a purchase of goods or services on account